Fertilisers stocks surge as Goverment allows profit margin of up to 12% for manufacturers of potassium and potassic fertilisers
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Fertilisers industry stocks rise after the Ministry of Chemicals and Fertilisers’ statement that that the government has allowed a profit margin of up to 12 per cent for manufacturers of potassium and potassic fertilisers as part of guidelines issued to evaluate the reasonableness of maximum retail prices for these fertilisers.
Fertilisers And Chemicals Travancore is currently trading at Rs. 860.45, up by 13.40 points or 1.58% from its previous closing of Rs. 847.05 on the BSE.
Chambal Fertilisers and Chemicals is currently trading at Rs. 364.30, up by 6.00 points or 1.67% from its previous closing of Rs. 358.30 on the BSE.
Gujarat Narmada Valley Fertilizers & Chemicals is currently trading at Rs. 745.90, up by 7.20 points or 0.97% from its previous closing of Rs. 738.70 on the BSE.
In efforts to curb possible instances of companies making unreasonable profits from the sale of the fertilisers, the Ministry of Chemicals and Fertilisers came out with the guidelines with retrospective effect. The guidelines for evaluation of the reasonableness of maximum retail prices (MRPs) of P&K fertilisers under the Nutrient Based Subsidy (NBS) Policy was issued on January 18, 2024 but will be effective from April 1, 2023. GST will be excluded from the evaluation of the reasonableness of MRPs.
