A farmer sprays a mixture of fertiliser and pesticide onto his wheat crop on the outskirts of Ahmedabad. (Photo: Reuters)

Nutrient-Based Subsidy Positive For Fertiliser Companies, Edelweiss Says

The nutrient-based subsidies for phosphatic and potassic fertilisers is a positive move for fertiliser manufacturers as it would take care of any increase in input costs, according to an Edelweiss report.

The Cabinet Commitee on Economic Affairs last week approved the proposal of the Department of Fertilizers for fixation of nutrient-based subsidy rates for these fertilisers for the year 2018-19.

In case of cost pressures, companies will pass it on to the customers with support from favourable monsoon and demand uptick, Rohan Gupta, associate director of institutional equities at Edelweiss Securities Ltd., told BloombergQuint in an interview.

Dhanuka Agritech Ltd. and Deepak Fertilisers & Petrochemicals Corporation Ltd. are the top picks from the sector, Gupta said.

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