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Fertiliser stocks decline after price cut

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Capital Market
Last Updated : Jul 05 2016 | 3:13 PM IST

Shares of nine fertiliser companies fell by 2.52% to 10.53% at 14:57 IST on BSE after the government reduced retail prices of non-urea fertilisers following drop in global prices of raw materials.

Coromandel International (down 10.53%), Zuari Global (down 2.88%), National Fertilizers (down 2.86%), Fertilisers & Chemicals Travancore (down 2.52%), Gujarat State Fertilizers Company (down 2.44%), Deepak Fertilisers & Petrochemicals Corporation (down 2.38%), Chambal Fertilisers & Chemicals (down 2.21%), Tata Chemicals (down 0.42%) and Nagarjuna Fertilisers and Chemicals (down 2.52%), edged lower. Rashtriya Chemicals and Fertilisers was up 0.10%.

The S&P BSE Sensex was down 100.52 points, or 0.37% at 27,178.24.

The retail prices of non-urea fertilisers including Di-ammonium Phosphate (DAP) have been slashed by up to Rs 5,000 a tonne, Union Minister Ananth Kumar said in a press conference held yesterday, 4 July 2016. The state-run fertiliser firms Rashtriya Chemicals and Fertilizers (RCF) and National Fertilizers (NFL) have agreed to reduce the price of non-urea fertilisers, Kumar said. The retail price of DAP has been cut by Rs 2,500 a tonne, Muriate of Potash (MoP) by Rs 5,000 a tonne. For a bag of 50 kg, the effective rate for DAP would come down by Rs 125 and MoP by Rs 250. The rate cut, which would be effective immediately, would entail a benefit of Rs 4,500 crore to farmers, he said, adding the move would help promote balanced use of fertiliser.

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First Published: Jul 05 2016 | 2:53 PM IST

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