The agrochemical sector in India seems to have run into a rough patch with crop prices down by a steep 30 percent, raw materials costing up to 40 percent more, crude oil prices on the rise, and a revival in exports from China. There is limited visibility on a sharp turnaround in the agrochem cycle, said global broking firm Jefferies.
Jefferies highlighted that wheat prices have seen a staggering drop of about 60 percent from their peak levels, while corn prices have also slumped by 45 percent from their highs, and soybean prices are down 25 percent.
This trend can be attributed to various factors, including record-high Russian wheat exports and robust Ukrainian grain shipments, along with favourable weather conditions contributing to record corn production in Brazil.