Monsoon effect: Farm input companies seen improving performance

The consumption of agrochemicals in the domestic market remained subdued during the fourth quarter of 2017-18

The financial performance of agri input companies is likely to improve during the first half of 2018-19 owing to forecasts that the monsoon this year will be normal.

Their sales and profits were under pressure in the fourth quarter of 2017-18 because of a sharp increase in the prices of raw material and weak lean season demand.

Companies such as Dhanuka Agritech, PI Industries and Rallis India posted declines in their sales and profits during January-March 2017-18. 

United Phosphorus reported a 35 per cent decline in its profit after tax in the January-March 2018 quarter.

Both dealers and consumers have