Satisfactory monsoon leads to upsurge in performance of fertilizer stocks

During Thursday’s trade, Nagarjuna Fertilizers and Chemicals was roaring on the bourses. The stock breached upper circuit of Rs 16.77 and witnessed spurt in volume by more than 10.15 times on the BSE. It had breached the upper circuit during Wednesday’s trade as well.
 
As monsoon has shown satisfactory performance till now, in-line with the IMD’s forecast, an upswing has been witnessed in the performance of fertiliser stocks. Therefore, it is likely to raise the fertilisers demand leading to growth in Kharif sowing. Fertiliser companies are likely to see greater profitability in the FY18.
 
The government notified on Wednesday that it is in the process to implement direct benefit transfer (DBT) system for the sale of fertilisers in the country. In a bid to track the movement of subsidised fertiliser till the last point, the government is providing incentives to retailers to install PoS devices and issue sales receipt to farmers.