Predictions of normal monsoon boost prospects for domestic agrochem firms

Domestic firms may outperform exports in March quarter and in FY25

With a normal monsoon predicted in India this year by private weather forecasting agency Skymet and the India Meteorological Department (IMD), prospects for domestic agrochemical or agri-input companies are expected to improve.

Brokerages believe that domestic companies will outperform exports in the March quarter (Q4 FY24) and in FY25.

Demand for agricultural inputs was weak in the December quarter due to elevated channel inventory, higher imports from China and pressure on realisations, which weighed on margins.

Sentiment in the rabi season was impacted by below-normal rainfall and lower reservoir levels. There could be some improvement in the March quarter.