Agrochemical Sector Expects Uptick in Exports Next Fiscal
Mumbai, India: The Indian agrochemical industry expects an uptick in export revenue next fiscal after suffering slowdown in two successive fiscals caused by lower usage of agrochemicals by farmers in key export markets like Latin America on the back of unrem unerated pr ices for ag ri produce.

Latin American nations, which account for large exports from Indian agrochemical firms, reported a fall in growth rate to 4% against 10% growth repor ted earlier. This has led to higher inventory levels of ag rochemicals in those markets.

With agro-commodity prices looking up in Latin American markets, coupled with fall in exports from China, sectoral analysts now expect a growth of 10-14% in export revenues for Indian agrochemical sector next fiscal. Further, new product launches could help in improved business volumes. India is the fourth largest global producer of agrochemicals after the US, Japan and China with an industry size of around $4.9 billion in FY17 with exports accounting for nearly half of it, says rating agency Icra. Latin American markets, which account for nearly a third of Indian agrochemical exports, suffered slowdown in both the last fiscal and ongoing fiscal, said Rahul Veera, assistant vice-president, Elara Capital. This, he said, was mainly due to low agro-commodity prices arising out of a deflationary trend in the global markets.