Why are Fertiliser Stocks Rallying Today?

On 25 Aug, Fertiliser shares seeing strong buying interest despite a subdued broader market on Tuesday. FACT, Rashtriya Chemicals and Fertilisers (RCF), Paradeep Phosphates, National Fertilisers and Madras Fertilisers were among the stocks that gained sharply as investors responded to the supply assurance from Russia.

Why are fertiliser stocks rallying today?

The rally followed a meeting between External Affairs Minister S Jaishankar and Russian President Vladimir Putin in Moscow. Putin assured India that Russia would continue supplying energy and fertilisers without interruption despite the disruption caused by the West Asia crisis.

Russia is an important source of fertilizer supplies for India. India imported 6.5 million tonnes of fertilisers from Russia in 2025, up 41% from the previous year, with the total value of these imports reaching approximately $2.96 billion, according to the United Nations COMTRADE database.

The assurance has eased concerns over potential supply disruptions caused by geopolitical tensions, providing a positive sentiment trigger for fertiliser companies.

Which fertilizer stocks gained the most?

FACT led the sectoral rally, with shares climbing as much as 15% to an intraday high of ₹898. Other fertiliser stocks also recorded strong gains during Tuesday's session:

• FACT: Up as much as 16%.

• RCF: Advanced around 6.3%.

• Paradeep Phosphates: Gained around 4.75%.

• Madras Fertilisers: Rose around 6% and was up more than 9% in early trade.

• National Fertilisers: Gained around 3.5%.

• Zuari Agro Chemicals: Gained around 1.72%.

Data as of 12:30 PM, 25th Aug’2026

How important is Russia for India's fertiliser supply?

The latest assurance is because geopolitical tensions had raised concerns about the availability and cost of key fertiliser inputs. The Russian commitment provides greater visibility on supplies to Indian farmers and the agriculture sector.

During his opening remarks at the 27th IRIGC-TEC meeting, Jaishankar said India-Russia trade had increased four-fold in five years, from around $13 billion in 2021-22 to nearly $60 billion in 2025-26. However, he also highlighted the widening trade imbalance, which increased from $6.6 billion to over $50 billion.

The fertiliser supply assurance therefore comes against the backdrop of growing economic ties between the two countries and India's significant dependence on imported fertilisers.

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What are the other factors investors are watching?

The fertiliser industry is also dealing with elevated global prices for finished products and LNG. According to the information provided, the government had used around 56% of the annual fertiliser subsidy in less than five months of FY27, with spending reaching ₹99,000 crore.

At the same time, production and imports of NP/NPK fertilisers declined sharply in the April-June quarter. Production fell 28% year-on-year to 19.2 lakh tonnes, while imports declined 48.5% to 4.9 lakh tonnes.

The government had also approved a 10–21% increase in nutrient subsidy rates for the 2026 kharif season in April, taking the total subsidy outlay to ₹41,534 crore. Fertiliser manufacturers, however, said subsequent increases in global input costs had overtaken the revision.

Conclusion: What does this mean for your portfolio?

The Russian assurance has provided a clear near-term sentiment boost for fertiliser stocks by easing concerns around supply disruptions. FACT and other sector stocks responded with sharp gains despite a muted broader market. Investors should watch whether uninterrupted Russian supplies translate into improved availability and how global input costs and government subsidy spending evolve, as these remain important factors for the sector.