Delayed or erratic rains typically impact sowing and make farmers miss the application of agrochemicals, which the companies dread the most
Stocks of agrochemical firms have reacted uncertainly after the forecast of below-par monsoon by the India Meteorological Department. While Insecticides (India) Ltd and Dhanuka Agritech Ltd have held up well, gaining 1-4%, Rallis India and Excel Crop Care Ltd lost 2-3%.
The mixed mood stems from the fact that the amount of rainfall based on averages has limited influence on the demand for agricultural inputs. For the agriculture sector, what is more important is a timely onset and even distribution of rains that set farming activity into motion. Delayed or erratic rains typically impact sowing and make farmers miss the application of agrochemicals, which the companies dread the most.
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