SULPHUR FERTILISERS
Fertilizer stocks plummet up to 9% as GST Council refers exemption recommendation to GoM
Fertilizer stocks like Fertilizers & Chemicals Travancore, GNFC, GSFC, Madras Fertilizers fell up to 9% as the GST council referred a recommendation on exempting the sector from 5% GST to Group of Ministers for rate rationalisation.
GST council refers Par panel recos to cut GST on fertiliser to Group of Ministers
Talking to reporters after the 53rd GST council meeting, Keshav said the proposal to reduce the GST rate on fertilisers has been referred to the Group of Ministers (GoM). The issue of further reduction of tax on fertilisers was placed before the GST council in its 45th and 47th meetings held in September 2021 and June 2022, though the council did not recommend any change in rates.
GST Council Meeting: Sin goods windfall, tax relief talks, and more ahead of budget buzz
GST Council Meeting: The upcoming 53rd meeting of GST Council is poised to discuss several key measures that could pave the way for significant tax reforms ahead of the government's first full budget. Among the agenda items are -- the use of approximately Rs 70,000 crore collected from GST compensation cess on products like pan masala and cigarettes. Discussions may also cover the potential waiver of interest or penalties on tax notices issued between 2017 and 2020, excluding cases of deliberate default.
GST Council likely to deliberate on online gaming tax, Par panel recommendation on fertiliser
The GST Council is set to discuss various issues in its upcoming meeting, including taxation on online gaming and the recommendation to lower tax on fertilisers by the Parliamentary standing committee. The current GST rate on fertilisers is 5%, while raw materials like Sulphuric Acid and Ammonia face a higher rate of 18%. The council will also review the decision to levy 28% GST on the full value of bets for online gaming companies, which came into effect on October 1, 2023.
Credit profile of fertiliser companies to remain comfortable in FY25: Ind-Ra
Demand in the fertiliser sector remained robust in FY24, led by higher availability of funds with farmers due to various policy measures, and the stable farm gate prices. Moreover, the sector over the past two-three years has seen supplementary budgetary allocations as and when the prices of key input materials were increased to enable raw material availability and economic viability with producers and importers.
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.
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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.
Coromandel International to invest Rs 1,000 cr to set up plant in Andhra Pradesh
Coromandel International, which is mainly in the fertiliser business, will invest Rs 1,000 crore to set up a plant to produce phosphoric and sulphuric acid at Kakinada in Andhra Pradesh. In a regulatory filing, the company said it has "commenced the project activity to set up its Phosphoric Acid-Sulphuric Acid complex facility at Kakinada".
Cabinet clears Rs 24,420 cr subsidy for P&K fertilisers in Kharif season
The union Cabinet approved a subsidy of ₹24,420 crore for phosphatic and potassic fertilisers for the upcoming kharif season, while maintaining the rate for di-ammonium phosphate at ₹1,350 per bag of 50 kg. The Cabinet also approved three new fertiliser grades under the Nutrient-Based Subsidy scheme to reduce import dependence.
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.
Volume for complex fertilisers to grow 4-5% next fiscal: CRISIL
Domestic sales of complex fertilisers in India are expected to grow by 4-5% in fiscal year 2025, driven by a normal monsoon and stable retail prices, according to a report by CRISIL. The growth rate for these fertilizers was 7-8% in fiscal year 2024, but the operating profitability of fertiliser makers is expected to decline by 30-35% this fiscal year. The report predicts that profitability will rebound next fiscal year due to stable raw material prices and revised nutrient-based subsidy rates.
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 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.
Fertiliser minister says neem-coated urea available at Rs 266.5/45-kg bag, asks SP prez not to mislead farmers
Fertiliser Minister Mansukh Mandaviya has clarified that neem-coated urea is currently sold at Rs 266.5 per 45 kg bag and will continue to be so. He also criticized the Samajwadi Party (SP) National President Akhilesh Yadav for misleading farmers about the development of new sulfur-coated 'Urea Gold'. The SP leader had previously raised questions about the vaccine made in the country during the Covid-19 pandemic.
SPIC Ltd unveils Rs 1,900 cr investment plan over the next two years
Southern Petrochemical Industries Corporation (SPIC) Ltd unveiled plans to invest Rs 1,900 crore in a strategic expansion over two years. Notably, Rs 970 crore will enhance the urea plant and establish a 150 MTPD Green Ammonia Plant. Greenstar Fertilizers Ltd allocates Rs 640 crore for a water-soluble fertilizer mixing plant and plant refurbishments. Additionally, Tuticorin Alkali Chemicals and Fertilisers Ltd commits Rs 290 crore for a soda ash and ammonium chloride plant. These initiatives aim to create employment and uphold SPIC's commitment to ESG principles, emphasizing responsible business practices.
Next in line to get re-rated? 6 fertilizer stock ideas with four having buy reco and upside potential of up to 27%
While it has been slower as compared to other sectors, even the fertilizer sector has been witnessing policy changes which have intended to plug loopholes and increase the operational efficiency of the companies. Given the policy measures, it would be worth bringing them to watchlist because if a re-rating takes place then we could see a sharp move. But one thing which one needs to remember is that in such sectors some time invested capital can underperform for some time.
Rabi season fertiliser subsidy of Rs 22,000 crore gets nod
The Union cabinet has approved nutrient-based fertiliser subsidy rates for the rabi season 2023-24, with an outlay of ₹22,303 crore. This move aims to ensure that farmers can access soil nutrients at reasonable rates despite high global prices. The subsidy rates for nitrogen-based fertiliser, phosphorus, potash, and sulphur have been announced. These rates are lower than those during the kharif season due to the rationalisation of subsidies based on recent international price trends. The government aims to provide fertilisers to farmers at last year's rates.
Union Cabinet approves NPK fertiliser subsidy for Rabi season; inclusion of Jamrani Dam Multipurpose Project accepted
The Union Cabinet has approved the Nutrient Based Subsidy (NBS) rates for NPK fertiliser for the Rabi season. The subsidy is expected to cost Rs 22,303 crore. The Cabinet also approved the inclusion of the Jamrani Dam Multipurpose Project under the Pradhan Mantri Krishi Sinchayee Yojana-Accelerated Irrigation Benefit Programme. The estimated cost of the project is Rs 2,584.10 crore.
Adequate availability of fertilisers for kharif sowing; states must act against diversion of urea: Mandaviya
Indian Union Chemicals and Fertilizers Minister Mansukh Mandaviya has assured that there is enough supply of fertilizers in the country for the ongoing kharif season. He also urged states to reduce the excessive use of chemical fertilizers. State agriculture ministers from various states and senior officers attended the meeting.
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.
U Saravanan becomes CMD of state-owner fertilizer firm NFL
U Saravanan has been appointed as the new Chairman and Managing Director of National Fertilizers Ltd (NFL), according to a regulatory filing. Saravanan was previously serving as CMD of another fertilizer CPSE, Madras Fertilizers Ltd. NFL is involved in the manufacturing and marketing of neem-coated urea, four strands of Bio-Fertilizers, and other allied industrial products.
Ind-Ra maintains neutral outlook for fertiliser industry for FY24
Sales in the fertiliser sector grew 15% yoy during April 2022-February 2023, led by higher availability of funds with farmers due to various policy measures, and the stable farm gate prices maintained by fertiliser companies as a response to the higher subsidy allocation during FY23 to counter the increase in raw material prices.
India's fertiliser imports up 3.9pc to 19.04 lakh ton in January
According to the latest data, of the total imports of 19.04 lakh tonne, 10.65 lakh tonnes of urea, 5.62 lakh tonnes of Di-ammonium Phosphate (DAP), 1.14 lakh tonnes of Muriate of Potash (MoP) and 1.63 lakh tonnes of complexes were imported.
6 stocks from agrochemical space which benefit from govt's focus on increasing agriculture yields; with upside potential of up to 54%
A number of agrochemical companies have been implementing backward integration due to focus on make in India and also they have been aggressively moving towards increasing their presence in the global market. Backward integration and capacity building is likely to pay dividends in the long term.
Govt asks fertiliser firms to buy gas from spot market; move may help in saving over Rs 10k cr as subsidy
Sources said the spot price is much lower than the contracted prices from suppliers and therefore the department of fertiliser directed the companies to float tenders to purchase the gas from the spot market. The government's fertiliser subsidy bill is estimated to rise to Rs 2.25-2.5 lakh crore during the current fiscal from around Rs 1.6 lakh crore in the previous year.
India seeks preferential treatment from global fertiliser suppliers; says will not tolerate cartelisation
Addressing a conference organised by the Fertilisers Association of India (FAI), Chemicals and Fertilisers Minister Mansukh Mandaviya said the government has taken various reforms and increased subsidy to ensure farmers get soil nutrients at an affordable price.
Centre approves Rs 51,875 crore for P&K fertilizer for Rabi 2022-23
New Delhi: The Centre has approved an additional fertilizer subsidy of Rs 51,875 crore for the rabi or winter planting season, which runs from October 2022 to March 2023. The Cabinet Committee on Economic Affairs (CCEA) approved the new nutrient-based subsidy rates for phosphatic and potassic fertilisers on Wednesday.
All subsidised fertilisers to be sold under single brand 'Bharat' from October
In the last financial year, the central government incurred a fertiliser subsidy bill of Rs 1.62 lakh crore. In view of a sharp rise in global prices in the last 5-6 months, the government's subsidy bill is estimated to rise to Rs 2.25 lakh crore in the current fiscal.
Adequate urea stocks in country; no need to import till December, says Minister Mansukh Mandaviya
"There is adequate availability of urea in the country. We have urea stocks to meet domestic requirements till December. We do not need to import till December," Mandaviya told reporters.
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