Fertiliser subsidy burden may come down by 1%: ICICI Direct

Pankaj Pandey, Head of Research, ICICI Direct

How are you looking at fertiliser stocks right now?

We do not cover the fertiliser sector but from a macro perspective what we see is that because of the distortion in pricing the NPK ratio had changed to about 7:3:1 which should ideally have been 4:2:1. Government is reducing the distortion in the prices and trying to bring the NPK ratio in a proportion. Going forward, this will be beneficial for the sector as a whole and we expect subsidy burden to really come down to by about 1% odd.