Agro-chemicals firm Insecticides India Ltd (IIL) on Thursday said price hikes are positive for the company in the short term as there is a price revision in the B2B segment and in the B2C segment.
In an interview with CNBC-TV18, Rajesh Aggarwal, managing director said the company has a high dependence on Chinese imports, "70 percent of our imports come from China and 30 percent comes from other countries. So the dependence on Chinese imports is high."
The company has managed to cut down inventory by 15 percent QoQ against its target of 25 percent, Aggarwal said, "So there are stocks available in the market but at the same time availability has become a crisis because in China the factories have been ordered to work for only 2-3 days a week. So it is becoming very difficult."
"China’s power outage has come at a time when India is at the closing of the Kharif season. In the Kharif season, we did not see the rainfall happening in July and August and the major part of the rainfall happened in September which has slowed down the agriculture season. So we are seeing heavy inventories in the market," he added.
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