Sales growth likely to sow seeds of distress for agrochem players

Exporters could do better as domestic firms are hit by monsoon delay

Agricultural input or agrochemical (agrochem) players might post a lower-than-expected April-June quarter (first quarter, or Q1) performance in 2022-23 (FY23) due to unfavourable weather conditions and higher inventory levels. Heatwaves earlier in the quarter and lower rainfall have led to a delay in planting.

Although there has been some recovery in rainfall, what could impact planting/acreage is labour shortage.

ICRA Research highlighted that with labour moving back to urban centres due to revival in service sector demand, the availability of manpower in rural areas to till the land may be limited in calendar year 2022. Also, the availability of fertilisers is a