FACT! Putin helps India's fertiliser stocks soar 13%

On Tuesday, fertiliser companies' shares outperformed the overall muted market sentiment, surging up to 13%, following Russian President Vladimir Putin's assurance of uninterrupted fertiliser supplies to India. FACT shares soared 13% to reach Rs 887, while RCF shares rose around 8%. Paradeep Phosphates shares jumped over 7%, and Chambal Fertilisers & Chemicals shares increased by 4%.

Russian President Putin assured India of uninterrupted fertiliser and energy supplies amid the disruption caused by the Middle East conflict, during a meeting with External Affairs Minister S Jaishankar. Prime Minister Narendra Modi expressed his anticipation of meeting Putin at the SCO summit, the BRICS Summit, and in due course, at an annual summit, as per their mutual convenience.

Putin highlighted that Jaishankar's visit underscored the deep-rooted relations between Russia and India, spanning government, parliamentary, and business levels. The heightened global prices of finished products and LNG have led the Indian government to utilize approximately 56% of the annual fertiliser subsidy in just five months of the new financial year 2026-27, according to The Times of India.

The subsidy spending on imports and domestic production of urea is projected to surpass the estimated Rs 1.77 lakh crore in FY27.

India's production and imports of NP/NPK fertilisers declined sharply during the April-June quarter due to the Middle East conflict, causing a 28% YoY drop in production and a 48.5% decline in imports. The government approved a 10-21% hike in nutrient subsidy rates for the 2026 kharif season, increasing the total subsidy outlay to Rs 41,534 crore. However, fertiliser manufacturers contend that their revision has been overtaken by subsequent increases in global input costs.