FACT, RCF, other fertiliser stocks rise up to 17% after govt issues Natural Gas Supply Regulation Order 2026: Here's why

FACT, RCF, other fertiliser stocks rise up to 17% after govt issues Natural Gas Supply Regulation Order 2026: Here's why

• Fertiliser stocks rose up to 17% after new gas regulation order
• Natural gas supply to fertiliser plants capped at 70% of average
• India's fertiliser reserves increased 36.5% year-on-year

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Shares of fertiliser companies rose up to 17% on March 10 the government issued the Natural Gas Regulation Order, 2026.

Government of India has invoked the Essential Commodities Act, 1955, to regulate the availability, supply and equitable distribution of petroleum and petroleum products and natural gas.

Priority sectors include domestic PNG, CNG for transport, LPG production, pipeline compressor fuel requirement, supply to fertiliser plants, gas supply to tea industries and other industrial consumers.

As per the order, the natural gas supply to fertiliser plants, will be capped at 70% of the last six-month average.

Shares of Fertilisers And Chemicals Travancore Ltd, Rashtriya Chemicals and Fertilizers Ltd and National Fertilizers Limited were trading 17%, 11.4% and 10.5% higher, respectively.

Shares of Gujarat State Fertilizers & Chemicals Ltd and Gujarat Narmada Valley Fertilizers & Chemicals Ltd climbed 9% and 6%, respectively. Shares of Deepak Fertilisers, Chambal Fertilisers and Paradeep Phosphates rose 4.8%-5.5%.

Natural gas is the primary feedstock for producing nitrogen-based fertilizers in India, specifically urea, where it accounts for over 80% of the production cost.

Supply of Natural Gas has been disrupted across the world, including India, as Qatar Energy, one of the largest gas producers, declared a force majeur.

Qatar Energy was forced to declare the force majeure as drone attacks from Iran during the ongoing war in West Asia has caused damage to its natural gas facilities, primarily located in Ras Laffan Industrial City.

India is the world's second-largest consumer of fertilisers and relies heavily on imports for DAP and potash, making it vulnerable to disruptions in key shipping lanes including the Strait of Hormuz.

Fertiliser companies had agreed to advance scheduled plant shutdowns for maintenance to March, a move that will allow firms to utilise the period of global disruption productively without affecting peak-season output.

Total fertiliser reserves stood at 177.31 lakh tonnes as of Friday, up 36.5 per cent from 129.85 lakh tonne a year earlier, the Department of Fertilizers said in a statement.

"Farmers are the priority of the government, and their interests will not be compromised under any circumstances," the department had said.

Stocks of urea -- the most consumed fertiliser and one heavily dependent on natural gas feedstock -- stood at 59.30 lakh tonne. Diammonium phosphate (DAP) inventories were at 25.13 lakh tonne, while NPKS fertilisers reserves reached 55.87 lakh tonne.