Fresh worries for agrochemical majors as govt considers banning 27 products

Net impact would depend on final list of chemicals to be banned and companies' move to diversify portfolio

Sentiment on the Street about agrochemical manufacturers was impacted from Tuesday’s news that the government is considering banning 27 agrochemicals. Stock prices of UPL, Coromandel International, Rallis India and Sumitomo Chemical, that fell between two and 9.6 per cent on Tuesday, with UPL witnessing the biggest fall. Although the stocks have seen some rebound on Wednesday, some overhang is likely to remain.

Analysts say the chemicals being considered for ban form a significant part of the export and domestic portfolio of many players. For instance, products such as 2, 4-Dinitrophenol, Chloropyrifos Mancozeb, Acephate, and Pendimethilin are strong portfolio contributors for