Fertiliser stocks crash: Shares of fertiliser companies tanked up to 5 per cent on Monday, April 13, as the fears of a spike in crude oil prices and uncertainty around the US-Iran ceasefire weighed on investor sentiment.
This comes after US President Donald Trump said Sunday that the US Navy would begin a blockade of ships entering or leaving the vital Strait of Hormuz, after US-Iran ceasefire talks in Pakistan concluded without an agreement. US Central Command (Centcom) announced the blockade would involve all Iranian ports, beginning on Monday at 10 AM EDT, or 5:30 PM in Iran, to be “enforced impartially against vessels of all nations.” This has raised concerns over global supply disruptions.
Coromandel International (₹2,130), Fertilizers and Chemicals Travancore (₹847.75), Paradeep Phosphates (₹118.55), Rashtriya Chemical (₹125.94), Rallis India (₹257), Dhanuka Agritech (₹1,016), National Fertilizers (₹74.70) and Deepak Fertilizers (₹1,079) were trading lower in the range of 1 per cent to 3 per cent in intra-day trade today. In comparison, the NSE Nifty50 was down 310 points or 1.29 per cent at 23,740 levels at 10:50 AM.
India is the world’s second-largest fertiliser consumer after China and depends heavily on imports of both raw materials and finished products. A large portion of these supplies comes from the Middle East and passes through the Strait of Hormuz, where shipments have been disrupted due to the ongoing conflict.
Additionally, China plans to ban sulphuric acid exports starting in May 2026, a move that is set to weigh on the global metals and fertiliser industries, which are already grappling with supply chain disruptions from the ongoing Iran conflict. Sulphuric acid plays a crucial role in phosphate fertiliser production. It is also used in metal extraction processes such as copper refining. This would directly impact the cost structures of fertiliser manufacturers in India.
Devarsh Vakil, head of prime research at HDFC Securities, said China is set to halt sulfuric acid exports from May, targeting supplies generated as a by-product of copper and zinc smelting to conserve availability during the peak crop-planting season.
"This move is likely to intensify existing raw material bottlenecks stemming from the conflict in Iran, putting additional pressure on the metals and fertiliser industries," he said.
Ambareesh Baliga, an independent market expert, said fertiliser inputs are closely linked to global factors. China has also announced that it will halt sulfuric acid exports, which could have an impact. "As for which stocks to go long on for the long term, it’s better to wait and watch for now, as the situation is still evolving. We were expecting some resolution, but that hasn’t happened yet," he said.