CHENNAI: CropLife India, an association representing pesticides and plant biotechnology organisations in the country, on Friday said in a statement that the ongoing Iran war would impact input costs by 20-25% for the sector.
“The disruption in supply chains and key shipping routes due to the conflict is likely to impact input costs by 20-25% for the crop protection industry, leading to a rise in costs for farmers accordingly. The disruptions may lead to shortage of certain crop protection products during a critical agriculture season, impacting yield and quality of produce,” said Ankur Aggarwal, Chairman of CropLife India and Executive Chairman & Managing Director of Crystal Crop Protection Ltd.
“The industry is expected to see lower capacity utilisation in this period across technical and formulation plants, and this may affect industry earnings and employment as well, particularly among the MSMEs,” he noted. “At this juncture, the industry requests for support and incentives on the energy front to enhance local production and capacity”.
“The supply gaps and volatility could spur circulation of illicit, counterfeit or substandard products, therefore, it is critical that we remain vigilant and activate all monitoring mechanisms,” he added.
The 17-member association also said that there is no shortage of stock and the companies which are part of the group are exploring different sources for products.