The Hindu Business Line : Sloppy monsoon may affect agro-chem industry

FIRST the delay in the arrival of monsoon rains and now the dry spell. The next few days are extremely critical for the country's crop protection industry.

"If monsoon rains do not resume during the week, domestic offtake of agro-chemicals could suffer," said Mr Pradeep Dave, President of Pesticides Manufacturers & Formulators Association of India (PMFAI).

But the industry, which is used to the erratic monsoon patterns, has diversified geographically and looked at overseas markets for business in the last couple of years.

However, prospects for the kharif sowing season do not appear encouraging at this juncture.

Sowing has been affected severely in Gujarat and Maharashtra. "Gujarat is in a mess. First the floods affected sowing and now the dry spell is likely to impact the re-sown areas," Mr Dave said.

Maharashtra, on the other hand, has had erratic rains with some areas experiencing deficiency.

The State is a major cotton grower and cotton crop consumes a great deal of agrochemicals.

Madhya Pradesh has had fair share of rains but Andhra Pradesh has had a mix, with some parts receiving normal rainfall and others - especially coastal regions - not receiving sufficient rains. There was a delay in the arrival of rains in the North.

This kharif season the industry was ready with inventories but the sowing season was delayed due to the late arrival of the South-West monsoon rains.

As of now there have been no incidence of major pest attacks. Consumption of agro-chemicals is yet to commence this kharif season, said an official of Sudarshan Chemicals.

For the first quarter, there has been a 12-15 per cent drop in agro-chem sales, according to Mr Dave.

Mr R.G. Agarwal, Chairman of Dhanuka group, said sowing in the northern States has picked up and there are no worries on account of the dry spell because of the support of irrigation in these parts.

Agrochem companies have been increasing their exports to hedge their risk of a fall in sale in pesticides in the domestic market.

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