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India's Cabinet Committee on Economic Affairs approved amendments to the New Urea Policy-2015 that raise the import-parity-linked cap on urea output beyond reassessed capacity. The change lets domestic units keep producing when international urea prices are low.
No decision was announced on reimbursing higher fixed costs.
Keeping more Indian urea production running reduces India's need for imports, which weighs on international urea prices. The policy change is a meaningful supply-side signal for global nitrogen markets.
india.comAbout the Author ANIMar 31, 2017After 34 past bearish policy events, Urea moved a median -0.8% over 5 sessions (38% higher; middle half -3.3% to +1.8%), and -4.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
