Impact of Government Policies on Financial Performance of Fertilizer Companies in Gujarat

Financial

This research examines how government policies influence the financial performance of fertilizer firms in Gujarat, India. Fertilizer companies play a pivotal role in supporting agricultural productivity and food security. Governmental regulations, subsidy schemes, pricing controls, and import-export policies significantly affect profitability, liquidity, and long-term financial stability of firms operating in this sector. The study analyzes key financial indicators such as Return on Assets (ROA), Net Profit Margin, Operating Profit Ratio, and Current Ratio for selected fertilizer companies GSFC, GNFC, IFFCO, and KRIBHCO over the period 2014-15 to 2023-24. The findings reveal that government policies have a substantial long-term impact on financial performance, contributing positively through subsidy support and negatively through delayed reimbursements and rigid price controls. The paper concludes with policy recommendations aimed at balancing farmer welfare with corporate financial sustainability.

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