Indian Fertiliser Stocks Surge on Hopes of GST Exemption to Lower Farming Costs

• Fertiliser stocks in India have surged due to hopes of GST exemption on fertilizers.
• Government-run fertiliser companies (NFL, RCF, GSFC, GNFC, FACT) saw stock increases between 1-7%.
• Private sector fertiliser stocks (Chambal, Coromandel) also hit record highs, gaining over 3% each.
• The BJP-led government aims to provide financial relief to farmers, addressing discontent in the farming community.
• The Fitment Committee is expected to propose removing the 5% GST levy on fertilizers to the GST Council on June 22.
• Removing the tax requires approvals from the Group of Ministers and the government.
• The GST exemption is anticipated to lower farming costs and boost fertilizer demand, especially before the annual budget on July 22.
• Good monsoons and the government’s rural relief focus have also driven the rally in fertiliser stocks.

Source: businesstoday.in

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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