Published on July 21, 2014
In the past few years, during the drought years 2002, 2004 and 2009 the sales of complex fertilisers such as phosphatic and potassic and urea have relatively remained strong as the purchase of the fertilser in volume takes place before the arrival of monsoon season. Moreover in the current fiscal 2014-15, the sales of fertiliser might not impact much, however this year in 2014, due to considerable fall in the farm income the sales of complex fertilisers might impact as the selling price of complex fertilisers is now released from controls or restrictions.
According to the Chairman of Dhanuka Agritech Ltd – RG Agarwal, the company will take a stance of picking up their sales due to resurgence of rains in the last one week and will also concentrate its sales in irrigated areas this year, which will account total arable land in the country nearly to 40%. Further according to the researched report, normal rains have only been reported in fourth of 36 meterological sub-divisions and so far the seasonal rainfall is noted around 35% which below normal.
Moreover the stocks of fertiliser industries have been in an upward trend after three years of negative returns, since the beginning of the fiscal year and in the Bombay Stock Exchange (BSE) Sensex, fertiliser companies have significantly increased 32% on an average as against rise of 10.26% between 1st April, 2014 and 2nd June, 2014. According to the market experts, after the general elections and company-specific news the rally in the fertiliser stocks can be attributed to the upbeat sentiment since the start of the fiscal year 2014-15.
According to the industry players, different set of policies for complex fertilisers and urea are currently presented by the government, however on 18th July, 2014 parliament informed that Comprehensive Fertilizer Policy has been planned by the government. Moreover according to the Chemicals and Fetilizers Minister Ananth Kumar, his ministry has by now conferred with number of stakeholders on the chemical policy, which they are working on it.
