NBS regime milestone for both industry,government: India Infoline

MUMBAI: India Infoline is of the view that the nutrient based fertiliser subsidy and hike in urea prices will are a significant milestones for both the industry and government.

The four key positives under the new regime would be:

Working capital cycle of fertilizer manufacturers will reduce thereby impacting earnings positively.

Partial pricing de-regulation for DAP and MOP products would revive new private investments in the sector which have been limited in the past 10 years.

Adoption of nutrient-based subsidy model and pricing de-regulation would reduce government’s subsidy burden and make it less prone to huge spikes.

Induce companies to offer innovative nutrient combinations.