Amid expectations of healthy profitability in 2021-22, following a normal monsoon for the upcoming kharif season, credit rating agency ICRA in its latest report has revised its outlook for the fertiliser sector to positive.
According to the report, additionally, the agri-economy witnessed a strong performance in 2020-21 with healthy farm incomes, and ICRA expects the benefit of the current year to rub off on the next fiscal as well.
Further, the report noted that the credit profile of the fertiliser sector is expected to witness a significant improvement in this new fiscal year, driven by the removal of the subsidy backlog following the pay-out of additional subsidy of Rs 62,602 crore by the government under the Aatmanirbhar 3.0 package.