Fertiliser stocks are all in the green today, almost every single one of them – Chambal Fertiliser, Zuari Agro, Nagarjuna Fert, Madras Fert, National Fert, RCF, FACT, SPIC, MCF, GNFC; all are up and about.

The cheer in the sector is thanks to the Govt yesterday extending urea subsidy till 2020, which is for another three years. The total estimated cost of this would be Rs.164 lakh crore. Usually, the subsidy extension decision is taken on a year-to-year basis; this is first time that its direct for three years.

The Govt will also implement direct transfer benefits for the disbursement of this subsidy.

The statutory controlled price of urea, the price at which farmers get the fertilizer is fixed at Rs.5360/tonne. The subsidy is the difference between the delivered cost of the fertiliser at farm gate and MRP.

Urea subsidy is projected to be Rs 45,000 crore for the 2018-19 fiscal, as against Rs.42,748 crore for this year.