Delayed monsoon rainfall to adversely impact agri input companies

Fertilizers, seeds and agrochemicals and other segments to cumulatively yield single-digit growth

A nearly three-week-long delay in the onset of monsoon this year is likely to hit the margins of agriculture input companies. Their growth could be limited to high single digits, said analysts and experts. The drought in western and southern states has forced farmers and agriculture businesses to alter their strategy. Farmers are testing out seeds, fertilisers and other chemicals over small areas before trying out large farms. Agri input companies are trying to attract them with extended credit and buyback.

“The weak monsoon has deferred crop sowing, and this might arrest growth of the domestic agrochemical segment to a single