Weak monsoon hits India farm-input demand, says Rallis India CEO
Erratic, below-normal rainfall is curbing farmer spending on pesticides, fertilisers and seeds, with herbicide and fungicide demand especially weak, according to Rallis India CEO Gyanendra Shukla.
What happened
Rallis India CEO Gyanendra Shukla said erratic, below-normal monsoon rainfall is reducing farmer spending on pesticides, fertilisers and seeds. Demand for
Key facts
- Monsoon rainfall was 15% below average as of September 21
- September rainfall was 18% below normal
- August rainfall was 16% below normal
- June-September monsoon contributes nearly 70% of India's annual rainfall
Why this matters
Plan for softer near-term agri-input sales in India, particularly herbicides and fungicides, as below-normal monsoon rainfall suppresses farmer purchasing.
What to watch
- India Meteorological Department updates on cumulative rainfall, late-September precipitation and regional distribution rather than national averages alone.
- Reservoir storage, groundwater levels and soil-moisture conditions in key cropping states.
- Kharif sowing acreage, crop-condition reports and expected yield revisions for rice, pulses, cotton, soybean and maize.
- Rabi sowing intentions and early demand for wheat, mustard, pulses and vegetable inputs.
- Dealer inventory days, receivables, credit defaults and management commentary from Rallis India and agri-input peers.