Fertilizers back in business, Government raises Urea prices:
- The government has approved a 10-percent increase in urea prices and partially eased controls on other fertilisers. The hike was announced by Ambika Soni, information and broadcasting minister, after a cabinet meeting. The urea prices would rise by 483 rupees per tonne from April 1, the minister said.
- The annual fertiliser subsidy is estimated at around 700 billion rupees in the current financial year.
- Finance Minister Pranab Mukherjee, who will present the annual budget on Feb 26, is expected to lay down a roadmap for rationalising oil and fertiliser subsidies.
- Currently, Indian companies sell fertilisers at a fixed price to farmers and prices are not based on manufacturing cost.
- The government compensates for the losses by way of subsidies. After the decision comes into effect, companies will sell urea at the higher — though still fixed — price, which translates into the need for fewer subsidies by the government. Prices of some fertilisers like P&K have been de-controlled, Soni said.
FERTILIZER stocks are looking very good with some positive announcements expected in budget and we have a buy on DEEPAK FERTLIZERS which still holds value. http://tanmaygopal.blogspot.com/2010/01/deepak-fertilizers-and-petrochemicals.html
Govt okays urea price hike, de-controls other fertilisers http://www.moneycontrol.com/news/economy/govt-shifts-to-nutrient-based-fert-sops-hikes-urea-prices_442504.html
Govt approves 10 pct hike in urea prices http://in.reuters.com/article/topNews/idINIndia-46273020100218