Domestic tailwinds are expected to lift the agrochemical sector's revenue growth to 12-14 percent, Crisil Ratings said on Tuesday.
According to a Crisil Ratings' report, revenues of the Rs 47,000 crore agrochemicals sector is expected to grow at a healthy clip of 12-14 percent this fiscal, following a sharp recovery in off-take from the domestic agriculture sector and continuing healthy exports.
Follow NewsGram on Twitter to stay updated about the World news.
"Domestic revenue which accounts for almost half of the sector's revenues will grow at 10-12 percent this fiscal compared with 6-8 percent last fiscal," the report said.
"On the other hand, exports, which rose 15 percent last fiscal, are expected to maintain their pace at 13-15 percent this fiscal according to Crisil's analysis of 33 agrochemicals manufacturers, which account for 90 percent of the sector's revenue."
An increase in average crop productivity could help up Kharif output by 6-7 percent this fiscal. Pixabay
As per the report, about 65 percent of agrochemicals demand is derived from Kharif (summer) season.
"An above-average and well-spread monsoon in the first half of the current fiscal has led to the Kharif sowing area increasing to a 5 fiscal high at 111.6 million hectares," the report said.
"That, and an increase in average crop productivity could help up Kharif output by 6-7 percent this fiscal." (IANS)