Fertiliser stocks rally ahead of govt meet

Fertiliser stocks surged by up to 6 per cent on the BSE.

Fertiliser stocks surged by up to 6 per cent on the BSE on hopes that the government would consider giving freedom to fertilisers companies to fix maximum retail price of di-ammonium phosphate (DAP).

Ahead of a cabinet meet,scheduled later today,Rashtriya Chemicals jumped by 5.67 per cent to settle at Rs 79.20 on the BSE,while National Fertilisers went up by 3.38 per cent to close the day at Rs 94.70.

The rally was also evident at the counters of other fertiliser companies,with Chambal Fertilisers & Chemicals gaining 4.76 per cent,Coromandel International rising 2 per cent and Deepak Fertilisers by 1.28 per cent.

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In a bid to boost supply of the key farm nutrient,the government is likely to remove the restriction on fertiliser firms that they can hike the maximum retail price of DAP only by up to Rs 600 a tonne.

In view of soaring DAP prices globally and shortages at home,the Cabinet is expected to discuss the Fertiliser Ministry’s proposal to remove the restriction to ensure enough supply of DAP for the ensuing kharif sowing season.

In April,the government had allowed companies to hike MRP of DAP by up to Rs 600 a tonne from Rs 10,750 a tonne.

However,due to rising global prices,they did not contract DAP imports fearing losses because they were not allowed to raise the MRP beyond the cap. Now,the country is facing huge shortage of DAP.

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Meanwhile,the 30-stock BSE benchmark Sensex ended 152.01 points up at 18,845.87.