Shares of fertiliser companies were trading higher on Thursday after the government increased the minimum support price (MSP) of Kharif crops.

What Happened: On Wednesday, the central government approved the increase in MSP of 14 Kharif crops for the marketing season of 2024-25. 

The price for paddy increased by ₹117 to ₹2,300 per quintal. The highest increase in MSP has been recommended for oilseeds and pulses. The other crops include ragi, bajra, jowar, maize, and cotton.

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The increase in MSP will likely translate to more income for farmers, mostly stimulating purchases from farmers. This will include investment in fertiliser for better agriculture inputs. 

Price Action: Most of the fertiliser stocks were trading higher on Thursday. 

• Shares of Fertilizers and Chemicals Travancore (FACT) were up 20% and got locked in upper circuit at ₹1,090.35. 
• Shares of Chambal Fertilizers and Chemicals were up 15.5% at ₹540.3.
• Shares of Rashtriya Chemicals and Fertilizers were up 19.45% at ₹221.25. 
• Shares of Gujarat Narmada Valley Fertilizers and Chemicals were up 9.5% at ₹763. 
• Shares of Gujarat State Fertilizers and Chemicals were up 8.1% at ₹259.3 
• Shares of Deepak Fertilizers and Petrochemicals Corporation were up 11.2% at ₹717.8
• Shares of National Fertilizer were up 18.26% at ₹149.

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