Fertilizer Stocks Soar on Nano DAP Expansion in Budget 2024

Tanushree Jaiswal Tanushree Jaiswal 1st February 2024 - 02:59 pm
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To boost India's agriculture sector, Finance Minister Nirmala Sitharaman announced the expansion of Nano DAP (Liquid) application across all agro-climatic zones. This has sparked a positive response in the stock market, with notable gains in fertiliser stocks.

Nano DAP Composition and Benefits

Following the announcement, key players in the fertiliser industry witnessed a surge in their stock prices. Coromandel International shares rose by 1.5%, while Gujarat Narmada Valley Fertilisers & Chemicals (GNFC) recovered from initial losses. Chambal Fertilisers and Chemical also recorded a gain of around 2%.

Nano DAP (Liquid) by IFFCO contains 8% nitrogen and 16% phosphorus. This innovation aims to replace traditional DAP, offering a cost-effective alternative for farmers, as a 50 kg bag of traditional DAP is currently priced at ₹1,350.

The focus on expanding the use of Nano DAP across different climate zones is a positive move. This liquid fertilizer is expected to enhance crop return while reducing fertilizer consumption, easing the subsidy budget, and decreasing import requirements.

Using Nano DAP in liquid form is good for the land because it doesn't pollute much. Farmers are encouraged to switch to liquid fertilizers like Nano DAP and liquid urea because it helps increase the number of earthworms in their fields. This, in turn, promotes natural farming without hurting crop production or income.

By encouraging the use of liquid fertilizers, the initiative aims to conserve agricultural land. This is particularly crucial in a country like India, where 60 percent of the population is still engaged in agriculture and related activities. The move is seen as revolutionary, contributing to India's self-sufficiency in food production and fertilizers. Reduced production costs and increased output are anticipated to boost the annual income of Indian farmers.

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Final Words

Amit Shah highlighted the substantial contribution of cooperative societies like IFFCO and KRIBHCO in India's self-reliance journey. Out of the 132 lakh metric tonnes of fertilizer produced by cooperative societies, IFFCO alone has contributed 90 lakh metric tonnes. The increase in the use of Nano DAP is a crucial move for India to become more self-sufficient in agriculture. This step is expected to bring advantages for farmers, the environment, and the economy as a whole.

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