Weak Monsoon Curbs Demand for Fertilisers, Pesticides and Seeds in India, Rallis India CEO Says

India’s weak and erratic monsoon is prompting farmers to reduce spending on pesticides, fertilisers and seeds, according to Rallis India Managing Director and CEO Gyanendra Shukla. The June-September monsoon accounts for nearly 70% of the country’s annual rainfall, with rainfall 15% below average as of September 21, according to Barclays.

Shukla said uncertainty over rainfall and crop yields is making farmers cautious about investing in agricultural inputs. Demand for herbicides and fungicides has been particularly weak, while overall use of crop-protection products, fertilisers and seeds is expected to remain under pressure.

India’s farm-input industry is also facing intense competition, with Shukla saying the sector has too many players due to low barriers to entry. He said companies focusing on innovation and strong partnerships would be better positioned as competition increases. Rallis’ peers, including Dhanuka Agritech and Godrej Agrovet, have also cited erratic monsoon conditions as a factor behind weaker demand.

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