Fertiliser stocks rally in Tuesday’s trading session after the government assured Parliament that there is no shortage of fertilisers during the ongoing rabi season. The statement eased supply concerns and boosted investor confidence across the fertiliser sector.
Shares of Fertilisers and Chemicals Travancore (FACT) led the gains, rising as much as 7.63% during intraday trade. Other fertiliser stocks also witnessed strong buying interest. Paradeep Phosphates and Madras Fertilisers advanced around 6%, while Chambal Fertilisers & Chemicals climbed nearly 5%. Meanwhile, Gujarat State Fertilisers & Chemicals (GSFC) gained close to 2%.
At around 12:30 PM IST, FACT was trading 6.3% higher, while Paradeep Phosphates was up 4.5%. This outperformance came even as the benchmark Nifty50 index declined 0.46%, highlighting sector-specific optimism.
Fertiliser Stocks Rally After Government Supply Assurance
The rally followed comments from Finance Minister Nirmala Sitharaman, who informed Parliament that fertiliser availability remains sufficient across the country. She said there was no shortage of fertilisers, whether sourced domestically or through imports, and that adequate buffer stocks were available for the rabi season.
According to the Finance Minister, fertilisers have been supplied to all states, and their movement is being closely monitored in real time. She also pointed out that a good monsoon has increased demand for urea, and the government is taking necessary steps to ensure uninterrupted supply to farmers.
Why Fertiliser Stocks Rally Despite Weak Broader Markets
Sitharaman added that improved import management helped strengthen inventory levels. Urea stocks rose from 48.64 lakh tonnes as of October 1, 2025, to 68.85 lakh tonnes by October 31, 2025. The rise in stock levels reduced supply-side risks and supported positive sentiment in fertiliser-related shares.
The assurance of steady supply is particularly important ahead of peak agricultural activity. Timely fertiliser availability supports crop productivity, stabilises farm incomes, and strengthens food security.
Market Outlook
The recent move shows that fertiliser stocks remain sensitive to policy clarity and supply updates. As long as inventory levels remain comfortable and distribution continues smoothly, the sector is likely to stay on investors’ radar.
