Agri input cos eye double-digit growth on favourable monsoon, govt policies

These firms faced several challenges like demonetisation, erratic monsoon and low agri produce prices which hit farmers' profitability, leading to poor demand for fertilisers and pesticides

After three years of muted growth, agri input companies are eyeing a double-digit sales jump in the current kharif sowing season due to timely start and evenly distribution of the south west monsoon rainfalls, which triggered 30 per cent increase in acreage in June 2020.

Agri input companies faced multiple challenges like demonetisation, erratic monsoon and low prices of agri produce which battered farmers’ profitability and cash flows, leading to poor demand for agri inputs like fertilisers and pesticides. Their revenues, therefore, clocked a mere 5.8 per cent compounded annual growth rate (CAGR) between FY17 and FY19. But now their revenues