Domestic offtake of herbicides is expected to increase amid labour shortage in a few states. In the insecticides and fungicides segment, an expected increase in kharif crop acreage by 2-3 per cent should support growth.
Large players are expected to reap the benefit of lower crude oil prices, SMEs, which account for 15-20 per cent of the overall industry and have an over 50 per cent dependence on imports, face disruption in raw material supplies and increases in prices of imported raw material.
While margins of large pesticides players are expected to expand50-60 basis points, supported by higher demand and lower crude oil prices, SMEs are likely to see a slightly lower expansion.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.