Industry Murmurs
5 October 2006 FCI reader T.V.Natarajan responds to comments on the Indian and Chinese markets:
I would like to comment on your article In Farm Chemicals International on the Chinese and Indian agrochemical industry.
1.Though the market is expanding in Africa and the Middle East, there is a greater risk attached to these markets, as most of the agents insist on 120 to 180 days credit that is too open without backing of an L/C. I am not sure how companies will be able to deal with this situation.
2.Secondly, language is a big barrier for Chinese companies to enter this market.
3.Thirdly, timeliness of supplies is a moot point to these companies from China, while India is better placed.
4.In India, because of oversupply, many producers are having second thoughts about introducing new molecules, other than multinationals who have patent protection.
5.On the whole, there is an urgent need for Chinese and Indian agrochemical manufacturers to get together and arrive at a working solution, as otherwise margins will continue to drop, forcing many companies to go out of business.
T.V.Natarajan.MSc(Ag).,M.B.A,
Managing Director,
The Scientific Fertiliser Co. Ltd.,
Coimbatore-641002 INDIA
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