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LATEST NEWS UPDATES | Agri input firms worry as dry spell looms large -TV Jayan

Agri input firms worry as dry spell looms large -TV Jayan

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published Published on Nov 19, 2018   modified Modified on Nov 19, 2018
-The Hindu Business Line

Many regions saw rain deficits; Maharashtra, Karnataka have already declared a drought

New Delhi:
Even though many States have declared a drought-like situation in some pockets of their respective territories, agricultural input companies are putting up a brave fight saying the situation is not all that bad and hoping it would have little impact on their bottomlines.

While the Met department, in its end-of-season report, said the country as a whole received 91 per cent of the long-period average rainfall of 89 centimetres during the four-month-long South-West monsoon season, several States reported deficient rains in some of their pockets.

Among the States that have witnessed a shortfall in rains are Gujarat (34 per cent below normal in Saurashtra and Kutch regions), Karnataka (29 per cent in North Interior Karnataka), Maharashtra (22 per cent low rainfall in Marathwada), apart from Bihar, Jharkhand and a few North-Eastern States where the rainfall deficit was above 20 per cent. In fact both Maharashtra and Karnataka have already declared a drought in certain areas and approached the Centre for financial assistance.

Early days

“If the drought conditions persist, it will have an impact on sales of fertilisers and crop protection products. But right now, it is a bit early to hazard a guess on the quantum of damage,” said an official with a state-owned fertiliser company, who did not want to be named.

One company that has been impacted by erratic rains already was agrochemicals and seeds firm Bayer CropScience. The company suffered a 25 per cent drop in its second-quarter profit on account of weather vagaries. “Sales were affected due to an erratic season marked by uneven rainfall and hailstorms that damaged standing crops in several parts of the country,” said Richard van der Merwe, Bayer’s Vice-Chairman and Managing Director, speaking last month.

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The Hindu Business Line, 16 November, 2018, https://www.thehindubusinessline.com/economy/agri-input-firms-worry-as-dry-spell-looms-large/article25519964.ece?homepage=true


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