Erratic monsoon impacts use of agrochemicals
The agrochemical industry faced a double whammy this kharif season. Due to the delayed and erratic spread of monsoon, the demand was impacted in crops such as cotton, soyabean as farmers chose to apply less inputs on weather uncertainty during the cropping season.
The agrochemicals industry also faced pricing pressure in case of generics due to falling prices in China, the largest supplier of raw materials.
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“From the herbicide point of view, it was a mixed bag for the industry as July was good, but August was worst due to the prolonged dry spell. In case of cotton, the long dry spell had impacted the sprayings on cotton in parts Vidarbha, Marathwada and Khandesh. The industry would have lost 1 or 2 insecticide sprays due to the bad weather as farmers chose not to take up spraying due to the weather uncertainty.
“As a result, 10-15 per cent of the total sales of chemicals related to cotton could be down this season,” said NK Rajavelu, CEO of Godrej Agrovet’s Crop Protection Business.
Echoing similar views, Bhavesh Shah, Managing Director, GSP Crop Science, said the overall impact on the industry was around 15-20 per cent due to decline in volumes and the fall in prices of generics. “At least two sprays have been missed this cropping season in cotton. Farmers normally take up 6-8 sprays,” he said.
Pink bollworm cases
The incidence of pest attacks especially the pink bollworm was reported more in the northern parts of the country, especially Punjab. “Wherever there was water availability, people have taken up spraying,” he said.
Shah said the fall in volumes was somewhat offset by the contribution of new products, and the prospects for rabi season looks good if the rains continue. Surplus rains in September have helped wipe off the deficit witnessed in the earlier months, especially during August, considered crucial for the cropping cycle. “There could be recovery in the next two months if the rains are good,” he said.
Shah said the latest spell of September rains are seen helping recovery in case of cotton, for which cropping season extends till February. “We see some recovery in sales, especially with recovery in crops such as cotton, paddy and also chilli with the latest round of rains seen helping these crops,” he said.
Earlier in August, farmers, who witnessed a prolonged dry spell across many parts of the country, chose not to spend on agrochemicals due to the weather uncertainty. “In many places they preferred to go for manual weeding and not spend on chemicals,” Shah said.
Kalyan Goswami, Director General of the Agro Chem Federation of India, said the use of agrochemicals chemicals during the kharif season was a tad lower down compared to last year, especially in crops such as cotton and soyabean. V
olumes were down for the companies, which have somehow managed. However, we are expecting an increase in demand in the forthcoming rabi season, Goswami said.