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 prices for
agri 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.
|
