The Indian government has decided to pay 540 billion rupees in cash subsidies to fertiliser companies and has cleared the first tranche amounting to 220 billion rupees, a news channel said on Wednesday.
The second tranche is expected to be cleared soon, and both the tranches will be paid off in three months, television channel CNBC TV18 reported, citing Ram Vilas Paswan, minister for chemicals, fertiliser and steel.
Shares of fertiliser firms Tata Chemicals, Rashtriya Chemicals, National Fertilisers, Nagarjuna Fertilizers and Chambal Fertilsers rode up 2-5 percent on the news.
India's fertiliser subsidy bill is likely to treble to 1.19 trillion rupees this fiscal year from last year, as the country tries to shield farmers from rising global prices, Paswan had said last month.
Indian fertiliser companies have to sell their products to farmers at below-market prices and the government compensates them in cash or bonds.
No comments:
Post a Comment