Fertiliser stocks jump as FM Sitharaman announces expansion of nano DAP application in Budget 2024

As the finance minister Nirmala Sitharaman announced that application of nano DAP on various crops will be expanded in all agro-climatic zones, fertiliser stocks jumped in trade.

Coromandel International shares stock gained 1.5 percent, and GNFC or Gujarat Narmada Valley Fertilisers & Chemicals pare part losses following the announcement. Chambal Fertilisers and Chemical gained around 2 percent.

Aimed at making India self-reliant in the field of fertilisers, IFFCO’s Nano DAP (Liquid) contains 8 percent of nitrogen and 16 percent of phosphorus. This can replace a 50 kg bag of traditional DAP is currently priced at Rs 1,350 for farmers.

“The focus on the usage of Nano DAP and extending its application for all climate zones is a big positive. Nano fertilizers will improve crop yield with less fertiliser consumption, lighten the subsidy budget, and will cut down import requirements. Coromandel International and Paradeep Phostaphates will be big beneficiaries,” said Lekha Badlani
Research Analyst, Moneycontrol.

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Due to it being a liquid, the nano DAP will minimally contaminate the land. Shah had said that by using liquid DAP and liquid urea, farmers can increase the number of earthworms in their land and move towards natural farming without reducing production and income.

This will also help in conserving the land. Shah said that in a country like India, where 60 percent of the population is still associated with agriculture and its related businesses, this revolutionary step will make India self-sufficient in the field of food production and fertilisers.

Reduced production cost and increased output will also boost the annual income of Indian farmers.

“Around 384 lakh metric tonnes of fertiliser is produced in the country, out of which cooperative societies produced 132 lakh metric tonnes. Out of this 132 Lakh metric tonnes of fertilizer, IFFCO has produced 90 Lakh metric tonnes. He said that cooperative societies like IFFCO, KRIBHCO have a huge contribution in India’s self-reliance in the fields of fertiliser, milk production and marketing,” Amit Shah said.