In FY26 Budget, FM Nirmala Sitharaman pegged fertiliser subsidy at Rs 1.68 lakh crore for FY26. This is lower than the revised estimate of Rs 1.71 lakh crore for the current financial year
Budget 2025: Finance Minister Nirmala Sitharaman unveiled measures aimed at boosting the rural economy, which are expected to benefit the fertiliser sector, as farmers represent its primary consumer base.
Market experts anticipate that the Finance Minister will allocate Rs 1.7 lakh crore towards fertiliser subsidies
Analysts expect a higher spending on rural economy, given the reduced majority the NDA government got in the 2024 elections
Much will depend on subsidy rates as raw material prices are rising
With the chemical industry still sitting on the cusp of a rebound in the sector, experts are anticipating continued support from the government through its PLI scheme to ensure a revival comes back later this fiscal.
Analyst are not anticipating an increase in the fertiliser subsidy bill, but the Finance Minister may retain the previously projected subsidy allocation, in addition to measures to support rural economy.
On June 22, the GST Council suggested lowering GST rates on fertilizers and their raw materials to aid manufacturers and farmers.
Banking, healthcare, and fertilisers are the sectors to watch, and stocks that have underperformed from 2018 will recover in the next six months.
Fertiliser, defence, railway stocks were disinterested by budget announcements
More than 20% of the company's revenue came from agri brands that were launched recently
The Finance Minister said Rs 2.83 lakh crore will be allocated for agri and irrigation schemes.
Shares of Coromandel International slumped 14.31 percent, National Fertilizers dipped 3.54 percent and Zuari Global fell 3 percent on BSE.
Fertiliser stocks took quite a hit on Friday and there is a sense of uncertainty on what exactly has happened on the policy front. In an interview to CNBC-TV18, Satish Chander, director general of Fertilizer Association of India clears the air and says the new investment urea policy is not rejected; in fact it is under discussion.
SP Tulsian of sptulsian.com joins CNBC-TV18 to give his perspective of where the fertilizer sector is headed post the confusion over the new fertilizer policy not going through and on some other stocks like Pipavav and IFCI.