Fertiliser stocks soar on buzz of subsidy reduction/news09012012

Shares of fertiliser companies were in green in a weak market on reports that the government may soon consider a substantial reduction in the subsidy for non-urea fertilisers. A final decision on the matter is expected on January 17.

Reports suggest that subsidy on DAP could be reduced by as much as Rs4,500 per tonne while MOP subsidy could be brought down by Rs500 per tonne.

A reduction in subsidy might lead to greater pricing power for fertiliser firms.
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