Why Are Fertiliser Stocks Rallying? NFL & FACT Lead With 11% Jump

Shares of fertilisers surged above 10 per cent on Tuesday, June 3 after the India Meteorological Department (IMD) said the southwest monsoon is expected to arrive earlier than usual this year.

The early monsoon prediction by IMD has improved sentiments of investors in industries liked to agricultural production and was a pertinent reason for positive rural consumption expectations, especially benefiting sectors like fertilisers. 

Key Fertiliser Stocks Buoyed By Monsoon Prediction

In the fertiliser vertical on June 3, the shares of Rashtriya Chemicals and Fertilizers Ltd (RCF) surged nearly 9 per cent to hit an intraday high of Rs 163.8.

Meanwhile, the share price of Paradeep Phosphates Ltd. surged as much as 4 per cent to hit a 52-week high of Rs 183.5 today.

Following suit, the shares of National Fertilizers Ltd, the largest government owned-Urea fertiliser-producer in India, jumped as much as 9.67 per cent to hit an intra-day high of Rs 109.49 on Tuesday, June 5, 2025. 

The shares of Fertilizers and Chemicals Travancore Ltd. jumped as much as 11.42 per cent to hit an intra-day high of Rs 995.20 in today's trading session. 

Early rains could trigger improved demand for daily basics, beverages and personal care products in both rural and urban locales.

The Indian Meteorological Department (IMD) had earlier in April forecasted above-normal cumulative rainfall for the 2025 monsoon period and negated any possible impact from El Niño conditions, usually associated with weak monsoon season.

The southwest monsoon is a key driver for India’s farm economy and supports nearly half of the country’s farmland that lacks irrigation. Agriculture and allied activities contribute around 18.2 percent to India’s GDP.

Fertiliser majors mainly benefit from strong sowing activity, which fastens the pace with the onset of monsoon. Timely and above-normal rainfall also boosts the use of agricultural-inputs and improves volumes for these firms.