Selective Supply Disruptions from China and Late El Niño May Moderately Impact India’s Agrochemical Market: Uday Raj Anand, Parijat Industries

Interview by Nimish Gangrade, Editor, Global Agriculture 

26 March 2026, New Delhi: As India approaches the upcoming sowing season, the agrochemical industry is navigating a complex interplay of weather uncertainties and global supply chain disruptions. While early signals of an El Niño raised concerns, current projections indicate a late onset with only moderate impact on sowing and agrochemical consumption, offering some reassurance to the sector.

At the same time, selective disruptions in the availability of key intermediates and technical materials from China, rising input costs, and geopolitical tensions are influencing procurement strategies, pricing trends, and supply chain planning across companies. Inventory levels, farmer sentiment, and commodity prices will further shape demand dynamics in the months ahead.

In this context, Nimish Gangrade, Editor of Global Agriculture, spoke with Uday Raj Anand, CEO – Domestic Business, Parijat Industries (India) Limited to understand how these factors are likely to impact agrochemical demand, availability, pricing, and supply chain resilience in India. 

Outlook for the Upcoming Sowing Season

Nimish Gangrade: What are your expectations from the upcoming sowing season in terms of demand for agrochemicals across key crops and regions in India?

Uday Raj Anand: I am cautiously optimistic about the upcoming sowing season. There have been early signals of an impending El Niño effect; however, most projections suggest a late El Niño. Historically, late El Niño events have had only moderate impacts on sowing and agrochemical consumption. This year, a counteracting influence from the Eastern Dipole also provides some comfort.

To some extent, the application of pre-emergence herbicides may be affected in Central and Western India. However, with an expected spate of rainfall followed by dry spells, weed emergence in crops like soybean and groundnut is likely to be significant, which could enhance the demand window for post-emergence herbicides.

Demand for insecticides and fungicides is expected to remain near normal, though it will depend on farmer sentiment, particularly in crops where low commodity prices may reduce the incentive to invest in crop protection.

Availability of Agrochemicals

Nimish Gangrade: Do you foresee any challenges in the availability of crop protection products during the season?

Uday Raj Anand: Any assessment of the current geopolitical situation involves a degree of uncertainty. However, assuming that global hostilities see some resolution by mid-April, we expect limited impact on the availability of most agrochemicals.

Most companies are currently carrying adequate, and in some cases excess, inventories of finished products both at the company level and within distribution channels. Additionally, procurement cycles in the industry are typically completed by mid-February, before major disruptions began to unfold.

While there may be some exceptions, overall supply should remain sufficient to meet farmer demand. 

However, rising costs of solvents and packaging materials are likely to exert some upward pressure on prices. Expectations of higher replacement costs may also influence market pricing behavior.

Interestingly, the more significant impact could be seen in the fertilizer segment, which may indirectly affect crop protection and biostimulant markets through broader agricultural economics.

Import Dependence and Rising Prices from China

Nimish Gangrade: Considering India’s dependence on imported intermediates and technical materials from China, how are rising prices affecting the industry?

Uday Raj Anand: The increase in prices of intermediates and technical ingredients from China is likely to create inflationary pressures across the value chain, at least in the short term.

However, these impacts are expected to reflect in the market with a lag of approximately two to three months, due to the availability of existing inventories of both raw materials and finished products.

If geopolitical tensions, particularly in the Middle East, escalate further, the industry could face significant challenges. However, if the situation stabilizes in the coming weeks, we expect a relatively quick normalization of pricing trends.

Price Outlook for Agrochemicals

Nimish Gangrade: What price trends do you anticipate in the agrochemical market this season on domestic business and exports?

Uday Raj Anand: In the Indian market, agrochemical prices are likely to remain stable in March, which is typically a period when companies focus on product placements.

However, price increases are expected from April onwards, with selective hikes likely among branded players. Rising costs of solvents, packaging materials, and other inputs will contribute to this trend.

That said, the pass-through of cost increases may not be complete due to the presence of high inventory levels in the market. If geopolitical tensions persist beyond mid-April, more significant price increases could be expected.

From an export perspective, rising prices from China may reduce competitive pressure and create opportunities for Indian manufacturers, especially those with backward integration. However, higher freight costs will continue to impact margins. Since the first quarter is typically a lean period for agrochemical exports, these effects will become more visible only if disruptions persist over a longer duration.

Supply Chain Disruptions and Dependence on China

Nimish Gangrade: Are you witnessing supply chain disruptions due to dependence on China, and how are companies managing these risks?

Uday Raj Anand: We are currently witnessing selective disruptions in the availability of certain materials. However, we are largely secured in terms of our input requirements for the first quarter, both for imported technical materials and intermediates used in our manufacturing processes.

We continue to rely on domestic sources for certain products, and it remains to be seen how Indian manufacturers respond to the evolving situation.

In the current environment, liquidity and the ability to procure materials through cash transactions without relying on credit will be critical factors in ensuring supply chain continuity. Companies that maintain financial flexibility and diversified sourcing strategies will be better positioned to navigate these uncertainties.

Also Read: Agrochemical Costs Likely to Rise 20–25% in India Amid Supply Chain Disruptions: CropLife India

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