Dhanuka Agritech, one of India's leading agrochemical company, on Thursday said it expects deadly coronavirus to impact the Kharif season if it extends beyond March.
In an interview to CNBC-TV18, MK Dhanuka, managing director, said, "September sales were delayed because of the continuation of monsoon in October. But rabi season is good so sowing has increased by 10 percent. Therefore, we were able to get good growth in rabi season and we hope that this momentum will continue in Q4 also. So, we expect around 20 percent growth in Q4 as well."
On price increase front, he said, "In this quarter, the price was reduced on a monthly basis. However, because of coronavirus in China, issues being noticed and some price increase started happening in India for the products which are coming from China."
Talking about business exposure to China, Dhanuka said, "We are importing three pesticides directly from China as we need registration from the ministry of agriculture to import any chemical. But indirectly we are buying from traders and Indian manufacturers. So that exposure is quite big as China is the cheapest globally and companies who are manufacturing in India are also dependent on China for intermediates and chemical."