UPL, Coromandel Intl, Rallis India: Fresh overhang for agrochem majors

Analysts say, chemicals being considered for ban form significant part of the portfolio, both exports and domestic sales, of many players

The Street sentiment on agrochemical manufacturers was impacted after the government issued a draft notification to ban import, manufacture, sale, distribution and use of 27 generic agrochemicals on the grounds that these are restricted or banned in other countries.

Stock prices of UPL, Coromandel International, Rallis India and Sumitomo Chemical, fell between two and 9.6 per cent last Tuesday following the news, with UPL witnessing the biggest fall. The reaction was not surprising given that the implications of
such a move can be significant.

Analysts say, chemicals being considered for ban form significant part of the portfolio, both exports and