New Delhi [India], August 27 (ANI): After three years of depressed pesticide prices, early signs of a recovery have emerged. A research data report by HSBC Global Investment Research shows a rise of around 5-10 per cent in the prices of key herbicides and fungicides in China.
It indicates that falling inventories of Glyphosate and Glufosinate, combined with policy shifts in China, are helping reset the global agrochemicals market.
For India, the changes in China carry significant weight, given the country’s heavy reliance on imported agrochemicals. Agrochemicals could emerge as one of the more promising subsectors if reforms are implemented consistently.
The policy shift in China comes after a prolonged phase of weak demand and oversupply that pushed prices to historic lows. According to the report, the reversal is being driven by a mix of China’s efforts to address disorderly competition and uncertainties related to trade tariffs.
China has begun tightening oversight of its chemical sector. Under the “anti-involution” initiatives launched in July, local administrations have been asked to measure and monitor production capacities in subsectors that have been operating for over two decades. This includes refining, coal chemicals, fertilisers, and chlor-alkali.
The pesticide industry association has also rolled out a three-year campaign to curb unsustainable pricing practices.
The report also noted that curbing outdated capacity is central to these reforms. The Chinese Ministry of Industry and Information Technology has identified petrochemicals as one of ten key sectors requiring modernisation.
However, the report added that despite these developments, uncertainties remain. Some plants older than 20 years may avoid shutdowns if they were previously upgraded, and labour considerations could delay closures. If capacity is not cut fast enough, net production may still increase in the next two years, limiting the pace of recovery.
With global pesticide destocking nearing its end and agricultural demand holding steady, the global agrochemical industry could be heading toward a healthier and more profitable cycle after years of stress. (ANI)
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