Union Budget 2024: Fertilizer stocks in focus. Here's what FM said

Fertilizer stocks are expected to remain in focus after Finance Minister Niramala Sitharaman on Thursday announced that the application of Nano DAP on various crops will be expanded in all agro-climatic conditions.

The announcement was made by Sitharaman while delivering her final budget speech of the Modi 2.0 government. This is an interim or a vote on account budget for the government to meet its expenses until the general elections. A full budget will come later after the new government assumes power.

"After the successful adoption of Nano Urea, application of Nano DAP on various crops will be expanded in all agro-climatic zones," Sitharaman said in her 1-hour budget speech.


On Thursday, fertilizer stocks were trading relatively weak and were down up to 2.6%. Rashtriya Chemicals and Fertilizers fell 2.6% to the day's low of Rs 178.25. Meanwhile, Fertilizer and Chemicals Travancore, Chambal Fertilizers & Chemicals, Khaitan Chemicals & Fertilizers and Gujarat State Fertilizers & Chemicals which were down up to 2.17%.


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Among the gainers was Coromandel International which was trading at Rs 1,065.35, up by Rs 15.45 or 1.47% on the NSE around 12:30 pm.

Among other major announcements, the FM said that building on the initiative announced in 2022, a strategy will be formulated to achieve ‘Atmanirbharta’ for oil seeds such as mustard, groundnut, sesame, soybean, and sunflower. This will cover research for high-yielding varieties, widespread adoption of modern farming techniques, market linkages, procurement, value addition, and crop insurance.

The markets did not react sharply on either side of the spectrum however, the bias remained on the positive side. Nifty was trading at 21,732.20, up by 6.50 points or 0.03%.

Among notable announcements, Sitharaman increased the capex allocation by 11.1% to 11.11 lakh crore which accounts for 3.4% of India's gross domestic product (GDP).

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