From UPL to PI Industries, favourable weather for agrochem companies

Recovery in global demand and govt measures to boost farm incomes will add to overall demand

Multiple boosts, on the back of an improving global agrochemicals cycle and favourable triggers at home, should benefit agricultural input companies. These events should enhance demand for their products, leading to higher volumes.
 
A key trigger is recovery in the global agrochem market, after a three-year slowdown. A recent report from the US department of agriculture says lowering of stocks in soyabean and other grains should support demand. Further, strong correlation between prices of crude oil and agri-commodities, due to linkages of ethanol and biodiesel, should push up prices of agri products.
 
Another trigger is domestic demand, led