The Fertilizer Stocks saw a strong rally during the special trading session on Budget 2025 day. This came after Union Finance Minister Nirmala Sitharaman announced plans to set up a new urea plant in Assam. The move, part of the Union Budget 2025-2026, boosted investor confidence, leading to a sharp rise in the stock prices of fertilizer and urea manufacturers.
Fertilizer Stocks See Strong Gains
The announcement had an immediate impact, pushing up share prices of several fertilizer companies:
- Madras Fertilizers surged 4.01%
- Paradeep Phosphates climbed 4.08%
- Fertilisers and Chemicals Travancore (FACT) gained 3.66%
- National Fertilizers Limited (NFL) increased 3.31%
- Rashtriya Chemicals and Fertilizers (RCF) rose 1.59%
Other companies, including Mangalore Chemicals, Southern Petrochemical Industries, and Gujarat Narmada Valley Fertilizers, also experienced steady growth, with stock prices rising between 1% and 1.6%.
New Urea Plant in Assam
During her Budget speech, Finance Minister Sitharaman outlined plans to establish a urea plant in Assam with a production capacity of 12.7 lakh metric tons per year. This initiative aims to reduce reliance on imports, boost domestic production, and strengthen the agricultural supply chain in the region.
Market Reaction and Economic Impact
The special trading session on Saturday, February 1, 2025, saw increased activity across major stock and commodity exchanges, including BSE, NSE, and MCX, as investors reacted to key budget announcements. Market analysts predict continued positive momentum in the fertilizer sector, with the new plant enhancing long-term growth prospects.
The government’s focus on self-sufficiency in fertilizer production aligns with its broader goals for agricultural and rural development. This move reinforces India’s commitment to food security and economic stability.
Investors and industry stakeholders will closely watch for more details on project timelines and investments in the coming months.
