Fertilser stocks on a high

Deepak Fertilisers has been hitting new highs for couple of days now. Today too, it hit a new high at Rs.383.85. Chambal Fertiliser too has hit a new high today at Rs.144.50. RCF also hit a new high today at Rs.101.25. Nagarjuna Fertiliser breached the 10% upper circuit at Rs.15.25 and FACT too breached the 4% UC at Rs.40.50.

Apart from the bountiful monsoon buoying moods on fertilizer stock counters, the market is happy with the news that the Govt all set to roll out 2 lakh point-of-sale (POS) machines all over India by 31st March 2018. These POS machines will be used for direct benefit transfer for fertilizer subsidy. This is very good news as it means fertilizer companies will get the subsidy instead of the beneficiaries after the sale is made by the retailers to the beneficiaries.

The Govt also stated that sale of all subsidised fertilisers to farmers or buyers will be made through the PoP devices installed at each retailer shop. The beneficiaries will be identified through documents like Aadhaar card, Kisan credit card and the voter identity.