Fertiliser stocks rally up to 6% after FM assures no urea shortage for Rabi season

The shares of fertiliser-makers soared in today's trading session after Finance Minister Nirmala Sitharaman said that there will be no shortage of fertilisers during the ongoing Rabi season. 

Fertilizers and Chemicals Travancore (FACT) shares rose nearly 6.2%, and Paradeep Phosphates shares advanced by 5.67%. Following suite, Chambal Fertilizers & Chemicals and Madras Fertilizers shares also gained 3.5% each. Rashtriya Chemicals and Fertilizers (RCF) and National Fertilizers shares were up around 2.5% each.

She said it as a reply during the discussion on the Supplementary Demands for Grants in the Lok Sabha. “Today we have a bumper buffer available of urea for the rabi season,” she told the House yesterday. The urea stock has increased from 48.64 lakh metric tonnes as of October 1, 2025, to 68.85 lakh metric tonnes by October 31, 2025. 

“Within a month, 20.21 lakh metric tonnes urea have been added by carefully importing steadily so that there is no shortage neither during the kharif season nor for the current rabi season,” Sitharaman said. She attributed the rise of consumption to better-than-expected rainfall. After a good monsoon, there is a demand for additional urea utilisation. It’s the business of the government to provide it,” Sitharaman said.

The government has sought Parliament’s approval for a net additional expenditure of ₹41,455 crore through the first batch of Supplementary Demands for Grants for FY26, of which ₹18,525 crore is towards fertiliser and related subsidies. 

Meanwhile, the Nifty50 and Sensex started today on a negative note. The NSE benchmark index declined 123.60 points or 0.47% to trade at 25.903.70. The Sensex is at 84,762.47, down by 450.89 points or 0.53%. 

According to analysts, equity markets opened on a negative note as persistent weakness in the Indian rupee, which is hitting a fresh record low against the US dollar for the fourth consecutive session, combined with weakness in overseas equities dampened investor sentiment. "This cautious backdrop prompted broad-based profit-booking across the market, reflecting a risk-averse stance at the start of the session," said Ponmudi R, CEO of Enrich Money.

According to him, the 25,900 level remains the crucial downside support and a break below this could open the path toward the next support at 25,800.