FERTILIZER SUBSIDY
Budget 2024: What should investors do with fertiliser, sugar stocks in the run-up to D-day?
The Union Budget 2024 could impact sugar and fertiliser stocks, with policy changes anticipated for ethanol and bio-fertiliser subsidies. Stocks historically lag before budgets, especially in election years. Analysts suggest waiting before investing. Notable stocks include Bajaj Hindustan Sugar, Chambal Fertilizers, and Coromandel International, though triggers for stock movements are not detailed.
Acre ARC sells Nagarjuna Fertilizers and Chemicals debt to AM Green for ₹1,685 cr
Nagarjuna Fertilizers has successfully cleared its massive debt, positioning itself for a potential merger with AM Green to optimize brand and distribution synergies. The unresolved sale issues of its plant and business loom large, impacting the transfer of government subsidies.
Budget wishlist from agriculture & MSMEs stakeholders: Sops, infra push, easy loans and PLI schemes
Stakeholders from the agricultural sector and MSMEs provided key suggestions to Finance Minister Nirmala Sitharaman during pre-budget consultations. Suggestions included rationalizing fertilizer subsidies, boosting agricultural infrastructure investment, and implementing employee-centric production-linked incentive schemes.
Skepticism on the Street is sometimes a good sign for long-term investors: 7 fertilizer stocks from different segments of the industry
There cannot and should not be any doubt that in the next five years, there are certain industries which are important from the perspective of increasing incomes in rural areas and are likely to get more attention from the government. Fertilizer companies are among the sectors which are on the list. The idea is to reduce the cost of production for farmers. Now, since yesterday there has been talks about removing GST on fertilizer, whether it be across the board or not has to be seen but surely there is a high probability of something positive happening in the sector. Now GST is just one part of it. If one looks at what has happened in the last few years, clearly a good amount of work has been done.
Fertiliser, agrochemical stocks rally as monsoon arrives early
Fertiliser and agrochemical companies like FACT, Nova Agritech, and Rallis India saw a boost in shares as the monsoons arrived early. Analysts expect increased demand for products due to favorable weather conditions, with specific bullish recommendations for Coromandel International and other companies.
Japan's birth rate hits record low, Tokyo introduces government dating app to boost marriage rates
Japan faces a demographic challenge with plunging birth and fertility rates, prompting governmental initiatives like a state-backed dating app to reverse the trend, as reported by CNN.
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Lok Sabha Results: Will a fractured mandate for NDA impede new govt's infra and capex push?
The 2024 Lok Sabha elections deliver a fractured mandate, influencing economic reform outlook. Experts recommend focusing on public capex and high-tech sectors for growth. Tanvee Gupta Jain predicts fiscal leeway for populist spending, supported by progress in implementing labor laws.
Will finally all the hard work yield results in Modi 3.0? 7 fertilizer stocks with 4 having ‘buy’ reco and upside upside potential of up to 22%
Few months back when it was announced that the fertilizer subsidy bill was seen as lower than expected, the street reacted negatively. The assumption is that if the fertilizer subsidy is going to come down then it is bad for the sector. Now there is another way to look at it, a government which has been ensuring that agriculture gets the right amount of attention and doing the various policy pushes, then why is the overall projected subsidy bill down? Probably, it may be because the government is expecting that policy actions which it has taken over the years will yield results and some of the other non-financial efforts which it will take in the sector will help reduce the bill without having an adverse effect on any stakeholders. Now unlike other sectors like railways where putting more money or making few policy changes has helped the sector, fertilizer is a more complex sector and is bound to take more time for getting the house in order. But then who says that transition for good is painless.
India’s $48 bn input subsidy for power and agri raises hackles
WTO members, including the US and UK, have raised questions about India's $48 billion farm input subsidies for 2022-23, which have been attributed to inflation and rising fertilizer costs. India explained that these subsidies are mainly for power, irrigation, and fertilizers and that the information had been duly notified to the WTO. The US claimed that this amount is more than twice the value of all trade-distorting support notified by India in 2021-22.
Ready for re-rating in Modi 3.0? 7 fertilizer stocks with four having “buy” reco and upside potential of up to 47%
Sometimes, what might appear to be negative development might actually be a sign that the worst is behind the sector. Fertilizer as a sector, both in the business and valuation side has been under performer. The fact is that in the last nine, the government has been making changes in policies which brings this sector out of the clutches of high government subsidy and other age old issues plaguing the sector. Now unlike other sectors like railways where putting more money or making few policy changes has helped the sector, fertilizer is a more complex sector and is bound to take more time for getting the house in order. A balance has to be maintained so that while the operating matrix of the industry improves but at the same time, neither the supply should get disrupted, nor the prices of fertilizer should see a jump to the farmer. What needs to be watched is when companies show the impact of all that has been going on in the sector, sooner or a bit later. To be fair, everything has not been a smooth ride for these companies. But then who says that transition for good is painless.
Closing fake accounts in Govt schemes saved Rs 3.35 lakh cr
The government's efforts to eliminate fake beneficiaries from various schemes resulted in saving approximately ₹3.35 lakh crore between FY18 and FY24. The Department of Expenditure identified and canceled millions of fake ration cards, beneficiaries of the LPG subsidy scheme, names under the MGNREGS, and beneficiaries under the PM Kisan scheme. These savings, which amounted to ₹30,000 crore in FY24 alone, are expected to be even higher when considering the last decade. The government is working with state governments to use technology to further reduce leakages.
India uses peace clause fifth time, for rice subsidies given in 2022
India invoked the peace clause for exceeding the 10% support ceiling for rice farmers, breaching WTO subsidy ceilings with $52.8B rice production and $6.39B subsidies, surpassing the 10% de minimis limit.
View: Time for hum do, hamare do 2.0?
While demographic and lifestyle changes have led to this global trend, most countries have failed to acknowledge and reward their women for the socioeconomic value of their ability to reproduce. Instead, women feel penalised by being unpaid and unrecognised producers, nurturers and caregivers. And even when they are rewarded, it is often too late. For instance, South Korean construction group Booyoung is offering workers a $75,000 bonus for each baby they produce when the country's fertility rate dropped from 0.78 in 2022 to 0.72 in 2023. The administration has spent $270 bn in incentives since 2006 to improve the birth rate.
India to stop importing urea by 2025 end: Mansukh Mandaviya
Asked about achieving self-sufficiency in urea production, Mandaviya said the Modi government has adopted a two-pronged strategy to end dependency on urea imports.
Wind and sun are free, but it's harder to get renewable energy projects built these days. Here's why
It's not easy when headwinds from the post-pandemic global economy - including high interest rates and inflation - are holding back often costly investment in wind, solar and other forms of clean power.
Increased use of nano-urea has reduced 25 lakh tonnes of traditional urea: Fertilizer Minister
Fertilizer Minister Mansukh Mandaviya announced a decline in traditional urea consumption in India from 357 lakh tonnes in FY 2023 to an estimated 327 lakh tonnes in FY 24, attributed to the introduction of nano urea. This reduction amounts to 25 lakh tonnes without disclosing subsidy savings.
Cabinet announces Rs 24,420-crore subsidy on P&K fertilisers for Kharif Season 2024
The Cabinet on Thursday approved Nutrient Based Subsidy rates for Kharif Season 2024 (from 01.04.2024 to 30.09.2024) on Phosphatic and Potassic fertilizers and inclusion of three new fertilizer grades under NBS scheme.
Sugar mills can sell potash derived from molasses to fertilizer companies, can claim subsidies
Sugar mills can sell Potash Derived from Molasses (PDM) to fertiliser companies, claim subsidy. PDM has 14.5% potash content. 10-12 LMT potash manufacturing in 3 years. PDM derived from molasses based distilleries. PDM provides additional revenue for sugar mills, ensures timely payment to farmers.
Acre puts Nagarjuna Fertilizers up for sale at double buy price
Distressed debt aggregator Acre Asset Reconstruction Company (ARC) plans to sell Nagarjuna Fertilizers and Chemicals, seeking ₹1,600 crore from bidders. The sale includes the Kakinada urea plant and other assets. However, the company faces issues with gas supply, litigation, reimbursements, and land usage norms.
Finally standing on its own feet? 7 fertilizer stocks, 4 with upside potential of more than 21%
On Interim Budget day when the fertilizer subsidy bill was seen as lower than expected, the street reacted negatively. The assumption is that if the fertilizer subsidy is going to come down then it is bad for the sector. Now there is another way to look at it, a government that has been ensuring that agriculture gets the right amount of attention and doing the various policy pushes, then why is the overall projected subsidy bill down? Probably, it may be because the government is expecting that policy actions that it has taken over the years will yield results and some of the other non-financial efforts that it will take in the sector will help reduce the bill without having an adverse effect on any stakeholders. Is it too early to take a negative view?
Govt provides nearly Rs 1.71 lakh cr as fertiliser subsidy till Jan in 2023-24
The government has allocated nearly Rs 1.71 lakh crore as fertilizer subsidies until January in the current fiscal year, aiming to ensure affordable prices and adequate availability of fertilizers for farmers. Minister of State for Chemicals and Fertilizers Bhagwanth Khuba stated in a written reply to Lok Sabha that the subsidy covers various fertilizers and follows the Nutrient Based Subsidy (NBS) policy since April 1, 2010, for Phosphatic and Potassic (P&K) Fertilizers.
Outgo towards food subsidy pegged at Rs 2.05 lakh cr for budget 2024-25: FM Nirmala Sitharaman
Food subsidy is provided to meet the difference between the economic cost of foodgrains procured by the government and their sales realisation at the PDS rate called central issue price (CIP) under the National Food Security Act (NFSA) and other welfare schemes.
Budget 2024: India may allot Rs 4 lakh crore for next year's food, fertiliser subsidies
Interim Budget: India plans to allocate about 4 trillion rupees ($48 billion) for food and fertiliser subsidies in the next fiscal year. The Ministry of Consumer Affairs, Food and Public Distribution estimates the food subsidy bill to be 2.2 trillion rupees, a 10% increase from the current fiscal year. Additionally, the fertiliser subsidy for the next fiscal year is expected to be 1.75 trillion rupees. Prime Minister Narendra Modi is expected to win a third term in the upcoming elections. Maintaining the subsidies is crucial for managing India's fiscal deficit.
Govt issues guidelines to evaluate reasonableness of non-urea fertiliser prices
For importers of P&K fertilisers, including di-ammonium phosphate (DAP) and Muriate of Potash (MoP), the profit margin allowed is 8 per cent. It has permitted 10 per cent profit for manufacturers and 12 per cent for integrated manufacturers. Unreasonable profit earned by the company will have to be refunded, or else it will be recovered by the ministry or adjusted with the future subsidy payment, as per the guidelines.
Is the clean up over? 8 fertilizer stocks with 4 having “buy” reco and upside potential of up to 47%
If one looks at how the policies have panned in the last nine years. It is clear that one by one every sector has been looked upon and if that sector has been getting government subsidies in any form, the government has tried to improve the delivery mechanism of that subsidy by plugging leakage in a manner that the right person gets the subsidy and the government gets the intended result. In the case of the fertilizer industry, it started with urea getting coated with neem which was not a financial measure but had a financial impact. Similarly, there were some measures which in the short term impacted some fertilizer companies but over a period, there has been a clean up going in the industry. Will the street be having a re-look at them ?
Plants producing nano liquid urea to be increased to 13 by 2025, says Minister Mansukh Mandaviya
Terming it a "game changer", the minister said this would not only fulfil the domestic requirement of nano urea but boost exports as well.
Why North Korean Supreme Leader Kim Jong Un is begging and crying in front of women
North Korean leader Kim Jong Un made an impassioned plea to the women of his country to have more children and raise them as communists. He stressed the need to reverse the declining birth rates and stated that stopping the decline in birth rates and providing good childcare and education are responsibilities that should be shared by all, especially mothers. Kim Jong Un highlighted the significant role that mothers play in shaping the future of the country and emphasized their mission to raise their children as pillars of socialist and communist construction.
Government should propose to GST Council to cut tax rates on fertilisers from current 5 per cent: Parliamentary panel
"The issue to further reduce GST on fertilisers was placed before the GST council in its 45th and 47th meetings held in September 2021 and June 2022, respectively. The GST council, however, did not recommend any change in the rates of fertilisers or other organic farm inputs. "The committee strongly recommend that the issue to further reduce GST on fertilisers may be placed before the GST Council at the earliest in the best interest of the farmers of our country," it added.
Fertiliser flying squads to crack down on diversion of agriculture-grade urea
The squad has registered 30 first information reports for diversion of urea, seizing 70,000 bags of the agrochemical. Around 11 persons have been jailed under the Prevention of Black Marketing and Maintenance of Supplies Act. The Centre provides urea at a highly subsidised rate of ₹266 per bag (of 45 kg) to farmers. It has to bear a subsidy of about ₹2,500 per bag.
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