Fertiliser Stocks In Focus: FACT, RCF, Madras Fertilisers Rally Up To 13% As Russia Assures Supply

Fertiliser stocks jumped sharply in early trade on Tuesday, August 25, with several counters gaining between 3% and 13%, as investors welcomed Russia's assurance that supplies of fertilisers to India would remain uninterrupted despite the ongoing geopolitical tensions in West Asia.

Fertilisers and Chemicals Travancore (FACT) was among the biggest gainers, rising as much as 13% to cross ₹887 apiece. Madras Fertilizers also advanced more than 9%, while Rashtriya Chemicals and Fertilizers (RCF) gained nearly 8%.

Paradeep Phosphates rose more than 7%, while National Fertilizers gained over 5%. Chambal Fertilisers & Chemicals was up around 4% in early trade.

The gains came even as the broader Indian market remained subdued, with investors focusing on the potential impact of continued Russian supplies on India's fertiliser availability.

Why Are Fertiliser Stocks Rising? Russia’s Supply Assurance Eases Concerns

Russian President Vladimir Putin assured India of uninterrupted supplies of energy and fertilisers during a meeting with External Affairs Minister S Jaishankar, amid disruptions linked to the conflict in West Asia.

Putin said Russia was taking steps to meet the requirements of Indian farmers and the agricultural sector and was prepared to increase supplies, according to the state-run TASS news agency.

The assurance is significant for India as fertiliser manufacturers have been dealing with higher international prices for finished products and key raw materials. The Middle East conflict has also disrupted supply chains and pushed up the cost of inputs such as LNG.

The Russian commitment helped ease some concerns around possible shortages or further disruptions in fertiliser availability during the crop sowing season, prompting buying in fertiliser stocks.

Jaishankar's meeting with Putin also comes amid continued efforts to strengthen economic and strategic cooperation between the two countries. Putin noted that the relationship between Russia and India had developed over several decades, with cooperation spanning governments, parliaments and businesses.

Fertiliser Subsidy: Higher Government Spending Supports Fertiliser Stocks

The rally in fertiliser stocks comes against the backdrop of rising government expenditure on fertiliser subsidies.

According to a Times of India report, the government has already used around 56% of its annual fertiliser subsidy allocation in less than five months of the financial year 2026-27. Spending has reached around ₹99,000 crore, raising expectations that the government's final subsidy bill could exceed the budget estimate of ₹1.77 lakh crore.

A significant portion of the expenditure is being directed towards imports and domestic production of urea, as higher global prices have increased the cost of supplying fertilisers to farmers.

The pressure on costs has also emerged in the non-urea fertiliser segment. India's production of NP/NPK complex fertilisers fell 28% year-on-year to 19.2 lakh tonnes during April-June, from 26.64 lakh tonnes in the same period a year earlier.

Imports of these fertilisers declined even more sharply, falling 48.5% to 4.9 lakh tonnes from 9.54 lakh tonnes a year earlier, according to industry officials citing fertiliser sector

data. The decline in production and imports came as the West Asia conflict pushed up prices of key raw materials and raised concerns over nutrient availability during the ongoing sowing season.

The government had increased nutrient-based subsidy rates by 10-21% in April for the 2026 kharif season. The move took the total subsidy allocation for the season to ₹41,534 crore.

However, fertiliser manufacturers have argued that the increase in subsidy rates has been offset by the subsequent rise in global input costs.

Against this backdrop, Russia's assurance of continued fertiliser supplies offers some relief to the domestic market. For fertiliser companies, investors will now track international input prices, import availability, subsidy spending and the government's response to rising costs as the kharif season progresses.

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