FACT, RCF, other fertiliser stocks rise up to 4% ahead of Budget 2025

FACT, RCF, other fertiliser stocks rise up to 4% ahead of Budget 2025

Fertiliser stocks were trading higher on February 1 ahead of Finance Minister Nirmala Sitharaman's Union Budget 2025 speech.

Shares of Fertilisers And Chemicals Travancore Ltd, Rashtriya Chemicals and Fertilizers, Paradeep Phosphates Ltd, National Fertilizers Limited were trading up to 4% higher on February 1 trade as market traders await cues from the Budget speech.

The Budget for the financial year 2025-26 is expected to allocate Rs 1.7 lakh crore towards fertiliser subsidies, a marginal increase from the Rs 1.64 lakh crore budgeted in FY25, sources told Moneycontrol last week.

The second Budget of Modi 3.0 is likely to promote organic alternatives through increased allocation for market development assistance (MDA) scheme, the sources said.

“2025-26 expected budget allocation for fertiliser subsidy is likely at Rs 1.7 lakh crore. A good monsoon often increases fertiliser demand but this depends on multiple factors, including weather conditions,” a government official told Moneycontrol on condition of anonymity.

At 10:20 am on February 1, FACT's shares were trading 1.5% higher at Rs 933 apiece.

Meanwhile, shares of RCF, NFL and Paradeep Phosphates were trading 2.36%, 2.44%, and 4.41% higher, respectively.

Shares of Chambal Fertilisers and Chemicals and Gujarat State Fertilizers & Chemicals Ltd were trading nearly 1% and 1.62% higher, respectively.