This kharif season may see a dip in prices of generic agrochemicals

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This fall season is set to witness a decline in the prices of agrochemicals, especially general herbicides and insecticides in the wake of the decline in global prices for the huge stocks in China, the largest manufacturer of these chemicals, and the decline in global demand.

Agrochemical makers are seen under pressure to pass on lower prices to farmers even as the start of autumn planting of major crops such as cotton, corn and others is delayed due to the late arrival of the southwest monsoon.

There is pressure on prices due to the international situation. There is some decline in the case of general insecticides and some insecticides. People are doing it and this effect is entering the market in stages,” said Rajesh Agarwal, Managing Director, Insecticides (India) Ltd. “The price drop varies from product to product, and the extent of the drop will be around 10-25 percent in some cases,” Aggarwal said.

quarter challenge

In fact, the downturn in product prices started from the fourth quarter of the previous fiscal year, as many agrochemical players faced pricing challenges in generic products due to oversupply from China. said Bhavesh Shah, managing director of GSP Crop Sciences. Many companies have already started lowering the prices of generics such as glyphosate, paraquat, acephate, chloropyruvate, mancozeb, cypermethrin, and others.

For farmers, who have traditionally faced increasing input costs, the expected decrease in agrochemical costs could provide some relief. This price pressure has slowed supply operations in the agrochemical supply chain this year.

CS Shukla, Senior Vice President, Crystal Crop Protection Ltd, said the pricing goes south, but may not be applicable to all products. “We can expect lower final prices if there are no other cost pressures such as labor and fuel costs that can offset the decline in raw material prices,” he said.

“At the farm level, the lift has not started. Actual sales will happen from the end of June or July when the monsoons really start, and we may see real price changes,” Shukla said.