Agri input firms' short-term margins to remain under pressure on price cut

Govt has asked seed companies to reduce prices of all hybrid seeds by 10% with effect from June 19

The profit margins of agri input companies are likely to get impacted by 1-2 per cent in the next few quarters due to their commitment to cut prices of key inputs like seeds and pesticides.

Both seeds and pesticides producers have agreed to cut agri input prices in a recent meeting with the officials of the Ministry of Agriculture. While seeds companies have obliged the government with 10 per cent price cut, pesticides companies agreed to roll back a recent price increase. This means they need to cut 15 per cent on maximum retail price (MRP) of a section of