Agriculture Sector Update - Larger Companies To Continue To Gain Market Share: ICICI Securities
A farmer walks through a field of a farm at a village in Haryana, India. (Photographer: T. Narayan/Bloomberg)  

Agriculture Sector Update - Larger Companies To Continue To Gain Market Share: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Agriculture sector is considered as essential and was less impacted by Covid-19/ lockdown in FY21.

However, we note following trends have emerged in FY21 and are likely to continue even in FY22.

1. larger companies to continue to gain market share from smaller players in agrochemicals, animal feed and seeds. Smaller companies faced challenges due to weaker balance sheet and liquidity concerns;

2. mechanisation will continue to accelerate;

3. higher usage of products that reduce dependence on labour;

4. farming of essentials (food grains) remains largely unaffected while perishables (horticulture) and non-essentials (cotton and jute) will continue to be negatively impacted;

5. Indian agrochemical companies to continue to gain market shares in International markets.

Click on the attachment to read the full report:

ICICI Securities Agriculture Sector Trends .pdf

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