PL Sector Update: Agro Chemicals & Fertilizers - Weekly Update – Crop acreages flat YoY; Cumulative rainfall as on 16th Aug’23 down 6% YoY- Early signs of EL-Nino; likely to intensify going forward

Agro Chemicals & Fertilizers - Himanshu Binani - Research Analyst, Prabhudas Lilladher Pvt Ltd

Weekly Update – Crop acreages flat YoY; Cumulative rainfall as on 16th Aug’23 down 6% YoY- Early signs of EL-Nino; likely to intensify going forward

§ Crop Acreages as on 18th Aug’23 flat YoY (+0.1% YoY)

§ Rainfall as on 16th Aug’23 down 6% YoY: Early signs of EL-Nino; likely to intensify going forward

§ Water Reservoir levels as on 18th Aug’23- down 18% YoY; South India remains lower

§ Indian paddy coverage up 4% year-on-year as overall kharif acreage gains

§ Wheat prices drop at in FCI’s e-auction to average ₹2,156/quintal

§ CAI maintains cotton crop estimate at 311.18 lakh bales for 2022-23 season

Exhibit 1: Crop Acreages as on 18th Aug’23 marginally up; +0.1% YoY

Source: Agricoop, PL

Exhibit 2: Rainfall as on 16th Aug’23 down 6% YoY: Early signs of EL-Nino; likely to intensify going forward

Source: IMD, PL

Exhibit 3: Water Reservoir table as on 17th Aug’23: down 18% YoY; South India remains lower

Source: CWC, PL

Exhibit 4: Weekly Crop Prices continues to be remunerative