Shares of fertiliser companies rallied sharply on December 16 after Union Finance Minister Nirmala Sitharaman assured Parliament that there would be no shortage of fertilisers during the ongoing Rabi season, boosting investor confidence in the sector.
Stocks such as Fertilisers and Chemicals Travancore (FACT), Paradeep Phosphates, and Chambal Fertilisers witnessed strong buying interest as clarity emerged on fertiliser availability and government preparedness.
Government Steps Boost Market Sentiment
Replying in the Lok Sabha during discussions on the Supplementary Demands for Grants, the finance minister said the government had significantly strengthened urea availability through calibrated imports and close monitoring of state-wise supplies.
“Today, we have a bumper buffer of urea available for the Rabi season,” Sitharaman said, highlighting proactive steps taken to meet higher farmer demand.
Urea Stock Levels Rise Sharply
According to official data shared by the finance minister, urea stocks rose from 48.64 lakh metric tonnes as of October 1, 2025, to 68.85 lakh metric tonnes by October 31, 2025. This increase of over 20 lakh metric tonnes within a month was achieved through steady and planned imports.
She added that the strategy ensured there was no shortage during both the Kharif and Rabi seasons, easing concerns around supply disruptions.
Why Fertiliser Stocks Are Rising
The government’s assurance on fertiliser availability reduces uncertainty around production, distribution, and demand, which is positive for fertiliser manufacturers’ earnings visibility. This clarity triggered buying interest in fertiliser stocks during the session.
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