Context:
Agrochemical sector is set to see a higher growth rate next fiscal on stable domestic demand and recovery in export volumes, said CRISIL Ratings.
Key Highlights:
- Forecast of Growth:
- The agrochemical sector is expected to grow between 7-9 percent in the next fiscal after growing between 5-6 percent in this current fiscal.
- Domestic Market:
- Good monsoons and good reservoir levels have increased domestic demand for growth in agricultural output.
- Pricing Pressures:
- Ongoing competition by low-cost Chinese products is a major threat where it inhibits pricing and revenues overall.
- Capex: Capital expenditure will be reduced by less than 1x for the next two fiscals, as the companies would be more inclined to maintaining healthy balance sheets.
The Agrochemical Sector
The agrochemical sector is a part of the chemical industry’s life sciences segment, and it involves the production and distribution of fertilizers and pesticides to increase crop yields.
Agrochemical Sector includes:
- Production of pesticides, manures and other agricultural inputs.
- Empower, innovate, and research.
- Equip farmers with tools for adapting.
- The development goes with development in farming methods and environment-friendly agriculture.
Credit Rating Information Services of India Limited (CRISIL)
Credit Rating Information Services of India Limited, is an Indian analytical company providing ratings, research, and risk and policy advisory service
