Shares of fertiliser companies such as Coromandel International, Nagarjuna Fertilizers, Deepak Fertilisers and Rashtriya Chemicals and Fertilizers came under pressure in the morning trade on Tuesday after the government announced that the retail prices of non-urea fertilisers including DAP have been slashed by up to Rs 5,000 per tonne following drop in global prices of raw materials.
Coromandel International shares plunged as much as 14.31 per cent on Tuesday. Other fertilisers majors National Fertilizers and Rashtriya Chemicals and Fertilizers plunged 3.5 per cent and 3 per cent, respectively.
Deepak Fertilisers fell 2.46 per cent while Nagarjuna Fertizers slid 5 per cent intraday. Other major fertiliser stocks were also trading in red in the morning trade.
According to reports, the state-run fertiliser firms Rashtriya Chemicals and Fertilizers (RCF) and National Fertilizers Ltd (NFL) as well
as private firm Indian Potash Ltd (IPL) have agreed to reduce the price of non-urea fertilisers.
The retail price of Di-ammonium Phosphate (DAP) has been cut by Rs 2,500 to Rs 22,000 per tonne, Muriate of Potash (MoP) by Rs 5,000 to Rs 11,000 per tonne. Prices of complex fertilisers have been cut down by Rs 1,000 per tonne.
For a bag of 50 kg, the effective rate for DAP would come down by Rs 150, MoP by Rs 250 and other NPK fertilisers by Rs 100.
(With agency inputs)