Fertilizer stocks, and other agricultural stocks, rose significantly on Thursday after government decided to continue a urea subsidy scheme till 2020 and implemented the direct benefit transfer (DBT) scheme. National Fertilizers, Rashtriya Chemicals and Fertilizers and Madras Fertilizers jumped by anywhere between 4 to 6 percent, reported Reuters. At 2 pm, National Fertilizers shares were higher by 5%, Rashtriya Chemicals & Fertilizers shares traded higher by 3.46%, and Madras Fertilizers were higher by 4.88% on BSE.
On NSE also, National Fertilizers shares were higher by 6%, Rashtriya Chemicals shares were up by 4.7% and Madras Fertilizers rose by 4.88%.
On Wednesday evening, the Cabinet Committee on Economic Affairs (CCEA), chaired by PM Modi approved the proposal of Department of Fertilizers to continue Urea Subsidy Scheme upto 2019-20 and for disbursement of fertilizer subsidy. This will cost the exchequer a total estimated cost of Rs 1,64,935 crore. The decision implies that there will be no increase in urea prices until 2020.
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