Fertiliser Shares Surge as China Moves to Lift Export Restrictions

Market Performance

Shares of leading fertiliser companies witnessed significant gains on August 19, following reports that China is planning to lift export restrictions on key fertiliser products. The move comes amid diplomatic discussions between China and India, creating optimism in the market.

• Agro Phos India: Up 5%, hitting the upper circuit at Rs 38.92 per share
• Southern Petrochemicals: Gained around 4%
• Zuari Agro Chemicals: Gained around 4%

Other major fertiliser companies also saw notable gains:

• Paradeep Phosphates: Up nearly 3%
• Rashtriya Chemicals and Fertilizers (RCF): Up nearly 3%
• Fertilizers and Chemicals Travancore (FACT): Up nearly 3%
• Gujarat State Fertilizers & Chemicals: Up more than 2%
• Madras Fertilizers: Up more than 2%
• Mangalore Chemicals & Fertilizers: Up more than 2%
• Chambal Fertilizers: Up more than 2%
• National Fertilizers: Up over 1%

Main News

The gains came after reports indicated that Chinese Foreign Minister Wang Yi, during his first visit to India in three years, assured that China will address India’s concerns over fertilisers, rare-earth magnets, and tunnel boring machines.

• Wang Yi met with External Affairs Minister S. Jaishankar on August 18 in New Delhi.
• China reportedly informed India that it is in the process of lifting export restrictions on fertilisers.
• The assurance also covers rare earth magnets and tunnel boring machines, critical for multiple sectors in India.

A statement by the Chinese Foreign Ministry emphasized maintaining principles of cordiality and mutual benefit with India.

Company Details

India imports nearly 80% of specialty fertilisers such as:

• Water-soluble nutrients
• Liquid foliar feeds
• Slow- and controlled-release variants
• Bio-stimulants

China had withheld shipments of these critical products in recent months, making the recent assurance significant for domestic fertiliser companies.

Summary

The news of China lifting fertiliser export restrictions has led to a broad market rally in the sector, with Paradeep Phosphates, RCF, FACT, and others recording gains between 2–5% on August 19. With India heavily dependent on imports for specialty fertilisers, this development is expected to ease supply pressures in the coming months.