Agri Input & Chemicals - Emkay

Recent urea announcements - non event for companies

- Recent media reports states that CCEA has approved reimbursement of fertiliser subsidy based on receipts from the retailers

- Under proposed changes, 90-95% of subsidy payment remains as earlier however balance 5-10% of the subsidy will be paid to companies after acknowledgement of receipt from retailers

- Govt. has also increased urea prices by Rs 50/mt. Retailers will get Rs 50/ mt on urea as an incentive for maintaining the records of movement of fertiliser.

- We see recent announcement as non-event for fertiliser companies however it is a positive move in subsidy payment directly to the farmers in future.

Source : Equity Bulls

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