Fertilizer PSU sale may start with smaller firms

Earlier plan to divest stake in large agrochemical makers faced resistance

- Rhik Kundu & Dhirendra Kumar

The central government is considering privatizing some small state-owned fertilizer companies, two people aware of the matter said, after an earlier plan to divest stake in larger public sector agrochemical makers faced resistance.

The stake sale process may begin in the first and second quarters of FY26, depending upon market conditions and the consensus among stakeholders, the people said on the condition of anonymity.

"With recent policy measures reducing the country's dependence on imports, it could be the right time for the Centre to offload its stake in some state-owned companies, particularly the smaller ones," the first of the two people said.

Niti Aayog had identified eight public sector fertilizer makers for a proposed strategic sale in 2022. However, the Centre put the plan on hold the following year as it prioritized increasing domestic production and self-sufficiency.

"The proposal faced resistance from various stakeholders who argued that it could hinder efforts to achieve self-sufficiency in fertilizer production," the first person said.