After effectively halving its subsidy on fertilisers for 2013-14 in the budget, India will have to allow producers to take the politically sensitive step of hiking urea prices to farmers or provide additional funding, industry officials say.
Tarun Surana, Research Analyst (Institutions) of Sunidhi Securities & Finance Limited, says the agricultural department, at the district level, does the certification and then it is communicated to the Centre and based on that subsidy is given.
Tarun Surana, Research Analyst (Institutions), Sunidhi Securities & Finance Limited suggests that though the depreciation of the rupee is increasing the costs of production for fertilizer companies, it is still sensible to buy GSFC and Zuhani.
GSFC and Zuari Industries are the top picks, says Tarun Surana, Research Analyst (Institutions), Sunidhi Securities.
The cabinet on Thursday approved revision in nutrient-based subsidy (NBS) on fertilizers. SP Tulsian of sptulsian.com and Tarun Surana of Sunidhi Securities and Finance in an exclusive interview with CNBC- TV18 discuss the likely market reaction on the fertilizer stocks post this development.
Tarun Surana research analyst (institutions) with Sunidhi Securities & Finance who tracks the fertilizer sector says, “the committee of secretaries (CoS) do not have power to make any final announcement on the policy. They are authorised to prepare a report on which GoM which take final call.”
In an interview with CNBC-TV18, Tarun Surana, Research Analyst at Sunidhi Securities & Finance Limited and Shankar Narayan, CMD of Fertiliser & Chemicals Travancore gave their perspectives on the possible outcome of the GoM's meeting to decontrol urea and the way forward for the fertiliser industry.