Fertiliser stocks soar as Sitharaman unveils new 12.7 L metric ton urea plant in Namrup
Shares of fertiliser companies shot up by 4%, as investors reacted positively to the announcement
A file photo of Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL) in Namrup. (Photo: X)
Guwahati, Feb 1: In a major announcement during the Union Budget 2025 for Assam, Finance Minister Nirmala Sitharaman, on Saturday, revealed plans for a new urea plant in the premises of Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL) in Namrup with a capacity of 12.7 lakh metric tons per year.
The new plant is part of a broader push to strengthen the agriculture sector, with Sitharaman also outlining initiatives to improve crop diversification, irrigation infrastructure, and farmer income.
The announcement sparked a significant rally in the fertilizer sector, with shares of fertilizer companies rising as much as 4%, as investors reacted positively to the supportive measures for agriculture included in the Budget.
Madras Fertilizers climbed by 4.01%, while Paradeep Phosphates saw a 4.08% gain. FACT experienced a notable surge of 3.66%, and National Fertilizers rose by 3.31%. Rashtriya Chemicals and Fertilizers (RCF) also posted a gain of 1.59%.
This latest development builds upon earlier efforts to boost the fertilizer sector in Assam. In July 2024, Union Minister Sarbananda Sonowal met with Union Minister JP Nadda to discuss the expansion plans of BVFCL in Namrup.
Central to their discussion was a proposed Rs 500 crore investment to set up two new Nano Urea Plants within the BVFCL compound, a move expected to modernise facilities and increase production.
With the announcement of the new urea plant and ongoing efforts to expand BVFCL’s capacity, Assam is poised to see significant growth in its fertilizer production capabilities, supporting both regional economic development and the agriculture sector's sustainability.