India: Pesticides Ban Unlikely to Dent Agrochem Revenues Much
The India government’s proposal to ban 27 pesticides, accounting for 15-20% of the Rs 45, 000 crore organized agrochemical sector revenue, is unlikely to impact manufacturers materially due to a troika of reasons, rating agency CRISIL said at Punjab News Express.
First, the ban is unlikely to be implemented in the current fiscal due to the Covid pandemic and as seen in the past, such bans are implemented in a phased manner. Second, manufacturers are getting ready with substitutes, given that ban on some of these products was anticipated, And third, exports of these products (40% of revenues) are being permitted on a case to case basis, the agency said in its report on the sector.
An analysis of 31 CRISIL-rated agrochemicals firms, accounting for 87% of the organized agrochemicals sector revenue in fiscal 2020, shows as many as 25 of them generate less than 15% of their revenue from the pesticides proposed to be banned. The balance six have 15-50% exposure, and of these, many also have a high share of exports.
Continue reading at Punjab News Express.
Get The Newsletter Today!
