Chambal Fertilisers, Rashtriya Chemicals, Tata Chemicals shares surge up to 3%; here is why

Shares of fertiliser firms surged on Tuesday, August 19, as China lifted curbs on the export of fertilisers, rare earth magnets/minerals, and tunnel boring machines to India.

India had underlined its concerns strongly with China, as sudden fertiliser curbs had directly impacted the availability of di-ammonium phosphate in the Rabi season.

China supplies nearly 30% of fertilisers to India for agriculture, rare earths for auto parts and tunnel boring machines for road and urban infrastructure development.

India also sources nearly 80% of its speciality fertilisers from China, which are used to enhance yields of high-value crops such as fruits and vegetables.

In June this year, media reports claimed that China had withheld clearances for Indian-bound consignments without imposing an official ban.

Speciality fertilisers, including water-soluble, micronutrient, nano and biostimulant variants, are non-subsidised products that improve soil health and nutrient efficiency.

India typically imports 150,000–160,000 tonnes of such fertilisers in the June–December window.

India’s speciality fertiliser sector is projected to grow rapidly, with the micronutrient segment expected to top $1 billion by 2029, according to the Fertiliser Association of India (FAI).

Shares of fertiliser firms like Zuari Agro Chemicals were up 4.32%, Fertilisers & Chemicals Travancore rose 3.54%, Chambal Fertilisers & Chemicals gained 3.47%, Rashtriya Chemicals and Fertilisers rose 2.36%, Gujarat State Fertilisers & Chemicals was up 3.22%, National Fertilisers surged 1.33%, and Tata Chemicals was up 0.02%.

Meanwhile, Chinese Foreign Minister Wang Yi has said India-China relations are showing a positive trend towards returning to cooperation and stressed that the two countries should view each other as partners, not rivals.

He said that this year marks the 75th anniversary of the establishment of diplomatic relations between China and India, and lessons could be learnt from the past, in an apparent reference to the over four-year freeze in ties following the Eastern Ladakh military standoff.