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Global Tariffs, Monsoon Bets, and a Silent Rally: Inside the Fertilizer Surge


Updated: July 23, 2025 09:21

Image Source : The Economic Tmes
1. Market Defiance: Fertilizer Stocks Outperform
 
While broader indices tread cautiously, fertilizer stocks surged ahead, buoyed by speculation around supportive government policies and favorable global trade shifts.
 
- Shares of FACT, Paradeep Phosphates, and Mangalore Chemicals jumped 5–15 percent in recent sessions
 
- The rally defied the broader market trend, with Sensex and Nifty showing mixed cues
 
2. Global Trade Winds Favor Indian Producers
 
A landmark European Parliament bill is set to raise tariffs on Russian and Belarusian fertilizer imports to 100 percent by 2028.
 
- Implementation begins July 2025, opening export opportunities for Indian firms
 
- Reduced competitiveness of Russian suppliers may redirect global demand toward India
 
3. Monsoon Momentum and Domestic Demand
 
The Indian Meteorological Department forecasts an early and above-normal monsoon, sparking optimism across the agri-input sector.
 
- Early sowing cycles expected to boost fertilizer consumption
 
- Kharif crop estimates hit a record 1663.1 lakh metric tonnes
 
- Government’s Atmanirbhar Bharat push reduces fertilizer imports, favoring domestic players
 
4. Budget Echoes and Production Push
 
Union Budget 2025 laid the groundwork for long-term sectoral growth.
 
- New urea plant in Assam with 12.7 lakh metric tonne capacity announced
 
- Focus on irrigation, crop diversification, and farmer income expected to sustain demand
 
Sources: Outlook Business, Onmanorama, Angel One, Economic Times, SubSahara Farming, World Bank Commodity Outlook July 2025

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