# GST to put severe pressure on margins of fertiliser companies

> Business Standard reports that India's move to a Goods and Services Tax would raise the total tax on fertilizer from 6% to 12%, while key raw materials such as phosphoric acid and ammonia face 18% GST. Fertiliser firms face margin pressure and a backlog of unused input tax credits of nearly Rs 30,000 crore.

- Date: 2017-06-05 · published 2017-06-05T12:00:00.000Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/70815-gst-to-put-severe-pressure-on-margins-of-fertiliser-companies
- Commodities: [DAP](https://feedsoft.ai/c/DAP.md), [Urea](https://feedsoft.ai/c/UREA.md)

## Why it matters

Higher Indian fertilizer prices or larger subsidy needs could raise DAP and urea import demand and support phosphate and nitrogen prices, with the cost pass-through still uncertain.

## Read by commodity

- DAP: bullish ▲
- UREA: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DAP | 2023-02-14 | [Fertiliser companies seek govt permission to hike MRP of non-urea fertilisers amid input costs rise \| Times Now](https://feedsoft.ai/events/37667-fertiliser-companies-seek-govt-permission-to-hike-mrp-of-non-urea-fertilisers.md) | +0.2% | -2.5% |
| DAP | 2021-11-29 | [Political events pressure fertiliser prices \| Farm Weekly \| WA](https://feedsoft.ai/events/43976-political-events-pressure-fertiliser-prices-farm-weekly-wa.md) | 0.0% | -2.6% |
| DAP | 2026-02-03 | [Global dynamics continue to shape fertiliser prices](https://feedsoft.ai/events/5722-global-dynamics-continue-to-shape-fertiliser-prices.md) | +1.2% | +5.6% |
| DAP | 2021-11-15 | [Soaring fertilizer prices add to inflationary pressures and food security concerns](https://feedsoft.ai/events/12681-soaring-fertilizer-prices-add-to-inflationary-pressures-and-food-security.md) | -0.7% | +2.6% |
| DAP | 2025-10-25 | [Fertiliser Prices Set to Surge as China Suspends Exports - PLY INSIGHT](https://feedsoft.ai/events/9556-fertiliser-prices-set-to-surge-as-china-suspends-exports-ply-insight.md) | -4.5% | -6.1% |
| UREA | 2021-11-29 | [Political events pressure fertiliser prices \| Farm Weekly \| WA](https://feedsoft.ai/events/43976-political-events-pressure-fertiliser-prices-farm-weekly-wa.md) | -7.2% | -6.0% |
| UREA | 2026-02-03 | [Global dynamics continue to shape fertiliser prices](https://feedsoft.ai/events/5722-global-dynamics-continue-to-shape-fertiliser-prices.md) | +3.3% | +33.9% |
| UREA | 2021-11-15 | [Soaring fertilizer prices add to inflationary pressures and food security concerns](https://feedsoft.ai/events/12681-soaring-fertilizer-prices-add-to-inflationary-pressures-and-food-security.md) | -0.6% | -1.8% |

## Sources

- business-standard.com: https://www.business-standard.com/article/economy-policy/gst-to-put-severe-pressure-on-margins-of-fertiliser-companies-117060500705_1.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.