Ahead of Finance Minister Nirmala Sitharaman’s scheduled presentation of the Union Budget 2024 on July 23, fertilizer stocks were soaring in trade, rising as much as 13 percent.
The increase in fertilizer stocks occurred as a result of market speculation on the potential amount of subsidies to be given to the industry in the next budget. Fertilizer subsidy requirements for FY25 were predicted in the interim budget at Rs 1.64 lakh crore, which is less than the Rs 1.89 lakh crore required for FY24.
Though industry participants expect the finance minister to hold onto the previously estimated subsidy allocation, the Street does not expect an increase in the subsidy cost.
Brokerage anticipates that the government will provide more money to explore innovative technologies like nano urea and lessen reliance on fertilizer imports.