Fertiliser Stocks Surge as Budget 2025 Focuses on Agriculture Growth

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, introduced several key measures aimed at boosting the agriculture sector. The government’s focus on improving irrigation, promoting crop diversification, and enhancing farmer income has generated positive sentiment in the fertiliser industry. Following these announcements, shares of fertiliser companies witnessed a notable rise, reflecting investor optimism about increased demand and sectoral growth.

Agriculture Reforms Drive Fertiliser Stock Gains

One of the significant highlights of the budget was its emphasis on strengthening rural infrastructure and improving agricultural productivity. As farmers represent the primary consumer base for fertilisers, policies aimed at increasing their income and efficiency directly impact the fertiliser sector. Following the budget announcement, shares of several fertiliser companies surged by up to 4%, reflecting market confidence in the government’s vision for rural development. 

The stock of National Fertilizer went as high as ₹113.35 per share(or 3.72%)and, Chamal Fertilizers touched an intraday high of ₹513.85(or 1.93%). While Gujarat State Fertilizers went up to ₹211.99 per share(or 3.37%).

Additionally, the budget outlined multiple initiatives to uplift the rural economy, which is expected to drive higher fertiliser consumption. The proposed improvements in irrigation facilities and sustainable farming practices are likely to boost overall agricultural output, increasing the demand for fertilisers in the long term.

New Urea Plant to Strengthen Domestic Production

A major step announced in the budget was the establishment of a large-scale urea production plant in Assam, with an annual capacity of 12.7 lakh metric tonnes. This initiative aligns with the government’s long-term goal of reducing dependence on fertiliser imports while ensuring adequate domestic supply. Increased local production is expected to stabilise prices, improve availability for farmers, and strengthen the overall fertiliser industry.

Furthermore, the government’s continued emphasis on self-sufficiency in fertiliser production reinforces its commitment to supporting both the agricultural and manufacturing sectors. The setting up of new plants and expansion of existing facilities are likely to provide additional economic benefits, including employment generation and regional industrial development.

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