FACT, Paradeep Phosphates, RCF, other fertiliser stocks rally up to 13%. Here’s why
Fertilisers and Chemicals Travancore (FACT) shares sharply rallied 13% to cross Rs 887 apiece on Tuesday morning, while Rashtriya Chemicals and Fertilisers (RCF) shares surged around 8%. Paradeep Phosphates shares rallied over 7%, while Chambal Fertilisers & Chemicals shares gained around 4%.
Russia assures India of uninterrupted supply of fertilisers
Russia on Monday assured India of uninterrupted supply of energy and fertilisers amid disruption caused by the Middle East conflict, as External Affairs Minister S Jaishankar met President Vladimir Putin. “We are doing everything we can to fully meet the needs of Indian farmers and the agricultural sector, increasing these supplies and standing ready to continue doing so,” Putin was quoted as saying by the state-run TASS news agency during his meeting with Jaishankar.
“Prime Minister Narendra Modi looks forward to meeting you at the SCO summit, then welcoming you in India for the BRICS Summit, and in due course, as per your mutual convenience, having the annual summit…So, we have, Excellency, I think a very strong picture of cooperation,” Jaishankar said.
The Russian President highlighted that Jaishankar’s visit underscored the level of relations Russia and India had built over decades. He said cooperation was underway in virtually all areas, including at the level of the two governments, parliaments and businesses, according to TASS.
Also read |India buys its most expensive LNG in years as war upends market
Govt’s higher spending on fertiliser subsidy
The elevated global prices of finished products and LNG have led to the government using up around 56% of the annual fertiliser subsidy in less than five months into the new financial year 2026-27, the Times of India reported.The higher spending, at Rs 99,000 crore, is being seen as an indication that the overall expenditure on fertiliser subsidy is set to cross the estimate of Rs 1.77 lakh crore in FY27, the report further said, adding that a large chunk of the subsidy is being spent on imports and domestic production of urea.
Notably, this comes after India’s production and imports of NP/NPK fertilisers fell sharply in the April-June quarter, as the Middle East conflict inflated prices of key raw materials, raising concerns over nutrient availability for the ongoing crop sowing season. Production of these complex fertilisers fell 28% YoY to 19.2 lakh tonnes from 26.64 lakh tonnes a year earlier, while imports slipped 48.5% to 4.9 lakh tonnes from 9.54 lakh tonnes, said industry officials, citing data from the Fertiliser Association of India (FAI).
In April, the government approved a 10-21% hike in nutrient subsidy rates for the 2026 kharif season, taking total subsidy outlay to Rs 41,534 crore. However, fertiliser manufacturers say the revision has been overtaken by subsequent increases in global input costs.
Also read | India’s fertiliser imports, production plunge as West Asia war drives costs
(With inputs from agencies)
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