Shares of National Fertilizer (NFL) are spiking in morning trade on November 25, rising over 4% after the company announced foray into manufacturing of nano urea, in-line with Centre's efforts to become self-reliant in urea production.
"The company shall be manufacturing 1.5 lakh bottles of 500 ml per day at its nangal plant with the new variant," NFL said in a statement.
Nano urea is a nano-technology-based fertilizer that delivers nitrogen to crops in the form of tiny particles. Compared to conventional urea, nano urea has greater surface area and ensures more nitrogen particles to plants, helping plants absorb nutrients more efficiently. Environmentally too, nano urea is considered friendlier as it reduces the amount of nitrogen lost to the atmosphere, which adds to the greenhouse gases.
National Fertilizer is the largest Central PSU in the manufacturing of urea, and its agri business is expanding with a wider range of alternative fertilizers to meet the requirement of Indian farmers. The company has been conducting extensive field research in this regard. "The company is conducting extensive field research through studying the effectiveness and acceptability of various types of nano urea variants presently available in the market," NFL said.
NFL has been promoting the use of alternate fertilizers among farmers, and a number of field demonstrations had conducted to explain the benefits of nano urea and other forms of fertilizer and micronutrients on crop growth and yield.
The total urea production in India rose by 2.92 million MT (approximately 10%) in FY24, reaching an all-time high of 31.41 million MT due to commissioning of new plants. India's production of urea and NPKs in India achieved a 10% and 1.45% rise respectively, in FY24.
Centre has set FY26 as the deadline by which India will end all urea imports. Currently, the nation mainly imports urea from Oman, Qatar, Saudi Arabia and the United Arab Emirates. Lower imports of urea also came on the back of higher local production of nano urea, as well as a shift towards more eco-friendly alternatives by farmers.
On a YTD basis, NFL shares are higher by 13%. The PSU has a market capitalisation of over Rs 5,400 crore.
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