Rashtriya Chemicals, Chambal Fertilisers and Deepak Fertilisers soared upto 6 per cent each on BSE
Shares of fertiliser companies rallied in a subdued market on Thursday after the centre announced an increase in subsidy for di-ammonium phosphate fertiliser to Rs 1,200 per bag from the earlier Rs 500 per bag. “Prime Minster Narendra Modi has said farmers should get fertilisers at old rates despite the international price rise… The welfare of farmers is at the core of government’s efforts,” the Prime Minister’s office said in a statement.
At 11:55 am, Rashtriya Chemicals & Fertilizers gained 6.25 per cent at Rs 84.60, Chambal Fertilisers & Chemicals soared 3.44 per cent at Rs 294.60 and Deepak Fertilisers climbed 4.46 per cent at Rs 297.30 on the BSE.
The prices of Di-Ammonium Phosphate (DAP) bags were recently hiked to Rs 2,400. But farmers will continue to receive them at last year’s rates of Rs 1,200 per bag on account of the revision in subsidy amount.
The Prime Minister’s Office said that this was the second major decision in farmers’ interest, after the direct transfer of Rs 20,667 crore in their account under PM-KISAN last month on the occasion of Akshay Tritiya.