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Fertiliser and agrochemical companies face multiple headwinds in FY22

Crop sowing numbers show a normal picture. But the monsoon's uneven spread has hurt sales of agrochemicals while supply constraints are weighing on fertiliser volumes

September 08, 2021 / 09:29 AM IST
Fertiliser and agrochemical companies face multiple headwinds in FY22

Representative image

Kharif crop sowing has reached normal levels, exceeding the average of the last five years. Normally, that would be good news for companies selling inputs to farmers. However, shares of major agriculture inputs sellers such as Coromandel International, Rallis India and Dhanuka Agritech are lower than their June-July levels when the current crop season began. The moderation in their share prices reflects the demand challenges the companies are facing. The uneven spread of the monsoon has hurt sales of agrochemicals in the initial part of the season, reveal channel checks...

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