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Weak Monsoon Forces Indian Farmers to Slash Spending on Crucial Farm Inputs
M
Moneycontrol•23-09-2026, 13:22
Weak Monsoon Forces Indian Farmers to Slash Spending on Crucial Farm Inputs
- •Indian farmers are reducing expenditures on pesticides, fertilizers, and seeds due to an erratic and weak monsoon, according to Rallis India CEO Gyanendra Shukla.
- •The June-September monsoon, vital for 70% of India's annual rainfall, is significantly below normal, raising concerns about crop yields, rural incomes, and food inflation.
- •Monsoon rainfall was 15% below average as of September 21, with August and September also experiencing significant deficits.
- •Farmers are uncertain about a full harvest, leading them to conserve resources and cut back on crop protection products, fertilizers, and seeds, particularly herbicides and fungicides.
- •The farm input sector faces consolidation due to an overcrowded market, with innovation and strong partnerships being key for companies to withstand competition.
Key Questions Answered
An erratic and weak monsoon has prompted Indian farmers to reduce their spending on seeds, fertilizers, and pesticides due to low rainfall certainty and concerns over crop yields and rural incomes.
Demand for crop protection products overall is compressed, with herbicides and fungicides seeing particularly weak demand as farmers cut back on resources.
Rallis India CEO Gyanendra Shukla stated that India's farm input sector is overcrowded with too many players due to low barriers to entry, making it ripe for consolidation.
