Fertiliser stocks rally on Rs 10,000-cr subsidy payout

The Fertiliser Ministry sought Rs 20,000 cr from the Finance Ministry to clear the pending dues

Shares of India’s top five fertiliser companies by market capitalisation, including Coromandel International and Chambal Fertilisers, have surged by 19 per cent in the past month on a special banking arrangement of Rs 10,000 crore by the government for the sector.

Industry executives said subsidy dues to the fertiliser industry were Rs 35,000 crore over and above the budgeted Rs 70,000 crore. Of this, Rs 10,000 crore will be wiped off their balance sheets due to the special banking arrangement.

The fertiliser ministry had sought Rs 20,000 crore from the finance ministry under the arrangement for 2016-17. Under the arrangement the government