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Normal monsoon to boost stocks of agri-related companies, cool inflation

Agriculture activity, according to recent channel checks by Prabhudas Lilladher, is expected to continue at a strong pace in FY22

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Puneet Wadhwa New Delhi
A normal monsoon in 2021 for the third consecutive year, as predicted by the Indian Meteorological Department (IMD) and private weather forecaster Skymet, is likely to boost fortunes of agri-related companies such as pesticides and fertilisers, irrigation, farm equipment etc., say analysts.

They, however, caution that the impact will also depend on government policies at a time when the country is facing a second wave of Covid infections and inflation concerns given the steady rise in prices of key commodities. That apart, the temporal and spatial distribution of the monsoon, experts say, rains will remain crucial.

“As of now, we