Monsoon delay won't hit business: Jain Irrigation

18878 Investors following Jain Irrigation. Share this News with them.

0

Like this story, share it with millions of investors on M3

Monsoon delay won't hit business: Jain Irrigation

Anil Jain, MD, Jain Irrigation Systems said that delay in the monsoon was a matter of concern but it was not time to panic. "Our business is not directly dependent on rains on the immediate basis. If it rains in the next seven days, the impact may be only about 5-10% depending on the crop shift," he said.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Markets Midday on CNBC-TV18 Watch the full show » ALSO READ See latest News about Jain Irrigation See previous management interviews See what other Experts & Brokerages are saying about Jain Irrigation Jain Irrigation BSE | NSE 29/05/12 Are Mutual Funds betting on Jain Irrigation?

Q: But if there is a delay you think that this 50% may not be realised?

Jain: I think it would still be realised because farmers still have some source of ground water which is available. Lack of monsoon or no monsoon or very little rain can affect the next season not the current season. So that demand would be still there.

Q: Are you seeing any impact of the delayed monsoon in the kind of demand that you are encountering?

Chand: Right now we are on track with the monsoon because till what we see in the crops where we operate, till July 15 if we get the rainfall we think we are on target and anyhow, 50% of the amount what the seed we have placed has already been purchased by farmers and we don't see a huge drop in this demand - it is on track with the monsoon.

Q: How much of this delay in rain impact sugar if at all and what's happening in the sugar belt right now?

Jain: Sugar is a long-term crop and actually lot of sowing takes place little bit later and sugarcane is irrigated crop, so it doesn't depend on rain per se. The crops which will get hurt are pulses, oil seeds because of lack of rains or substantial delay in rain. Something like sugarcane won't get affected but it will get affected if water is not available at ground source or in rivers or cannels at a later stage. But as we know right now the farmers in Tamil Nadu, Maharashtra - all over places, want to go for huge amount of new sugar plantation. We have seen big demand from lots of sugar factories who want to provide irrigation system to their farmers because last year they got very good money for sugarcane.