Fertiliser Policy Update Urea to be brought under NBS n ::Emkay

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Fertiliser Policy Update

Urea to be brought under NBS

n     Government of Ministers (GoM) on fertilisers has proposed for partial decontrol of urea under NBS, decision is subject to approval by CCEA

n     GoM proposed to increase urea prices by 10%, however it will benefit only the government to reduce subsidies and not the companies as companies continue to receive old subsidies

n     Urea companies are likely to be divided in four groups (as against six groups currently) the details and basis of grouping is yet not revealed

n     Proposed NBS implementation from 1st Apr’2012 under which companies may be allowed to increase prices by their own. Take this opportunity to reiterate BUY on Chambal Fertiliser