Fertilizer Stocks in Focus Ahead of Budget 2026: Sector Seeks Targeted Reforms

• Fertilizer stocks like FACT, Paradeep Phosphates, Chambal Fertilizers, Madras Fertilizers, RCF, and National Fertilizers are under scrutiny ahead of Budget 2026.
• The sector anticipates policy continuity and targeted reforms to boost farm productivity, fiscal discipline, and long-term sustainability.
• Budget 2025-26 allocated Rs 1.84 lakh crore for fertilizer subsidies, slightly less than the revised FY2024-25 estimate of Rs 1.89 lakh crore.
• ICRA projects fertilizer sales volumes to grow 1-3% YoY in FY2027, with profitability for phosphatic and potassic fertilizers expected to remain stable.
• Industry experts advocate for strengthening the domestic fertilizer ecosystem, reducing reliance on volatile global supply chains, and rationalizing urea use.

Why It Matters: Fertilizer sector eyes Budget 2026 for reforms to enhance productivity, sustainability, and domestic self-reliance.