New Delhi, Nov 10 (IANS) Domestic tailwinds are expected to lift the agrochemical sector’s revenue growth to 12-14 per cent, Crisil Ratings said on Tuesday.
According to a Crisil Ratings’ report, revenues of the Rs 47,000 crore agrochemicals sector is expected to grow at a healthy clip of 12-14 per cent this fiscal, following a sharp recovery in off-take from domestic agriculture sector and continuing healthy exports.
“Domestic revenue which accounts for almost half of the sector’s revenues, will grow at 10-12 per cent this fiscal compared with 6-8 per cent last fiscal,” the report said.
“On the other hand, exports, which rose 15 per cent last fiscal, are expected to maintain their pace at 13-15 per cent this fiscal according to Crisil’s analysis of 33 agrochemicals manufacturers, which account for 90 per cent of the sector’s revenue.”
As per the report, about 65 per cent of agrochemicals demand is derived from kharif (summer) season.
“An above-average and well-spread monsoon in the first half of the current fiscal has led to the kharif sowing area increasing to a 5 fiscal high at 111.6 million hectare,” the report said.
“That, and an increase in average crop productivity could help up kharif output by 6-7 per cent this fiscal.”