Fertiliser shares settle higher as govt raises gas supply to fertiliser units; Teesta Agro, RCF gain up to 8%

About this update from Rashtriya Chemicals & Fertilizers Ltd.

Fertiliser shares on Monday settled up to 8 percent higher after the government increased natural gas supply to fertiliser units amid the ongoing West Asia crisis.The government has raised gas supply to fertiliser plants and key sectors to 90 percent from the existing 70–75 percent, effective April 6, 2026, as part of efforts to ensure energy stability in view of the evolving situation in West Asia.The increase, supported by available domestic inventory and scheduled LNG cargo arrivals, is aimed at ensuring steady feedstock supply to urea plants ahead of key agricultural demand.In addition, gas supply to other industrial and commercial sectors, including those linked to City Gas Distribution (CGD) networks, has been increased by a further 10 percent from April 6.Shares of fertiliser companies rose following the announcement.Teesta Agro Industries led the rally, surging 8.29 percent to an intraday high of Rs 110 per share on the BSE.Rama Phosphates gained 5 percent, while Aries Agro rose 4 percent.Among other stocks, Zuari Agro Chemicals, Madras Fertilizers and Rashtriya Chemicals and Fertilizers ended around 2 percent higher. Fertilisers and Chemicals Travancore (FACT) also rose about 2 percent.The move is expected to support fertiliser production and help maintain industrial activity at a time when global energy markets remain volatile due to geopolitical tensions.Fertiliser plants are among the largest consumers of natural gas in India, and higher supply levels are likely to support urea output and supply chains.Rising energy costs are seen increasing fertiliser production expenses, which may add to broader inflationary pressures.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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