Agrochemicals Sector Update - Diversification To Insulate Companies From Mancozeb Ban In The EU: Motilal Oswal
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Motilal Oswal Report
In October 2020, European Union member states voted not to renew the license for use of Mancozeb. As a result, Mancozeb is banned in the EU.
Manufacturers can sell to distributors up to June-July 2021 and a distributor can sell to farmers up to January 2022.
In this note, we have analyzed the impact of the EU ban of Mancozeb. Here are our key insights.
Mancozeb is a dithiocarbamate non-systemic agricultural fungicide, with multi-site protective action on contact. It is a combination of two other dithiocarbamates: maneb and zineb.
The mixture controls many fungal diseases in a wide range of field crops, fruits, nuts, vegetables, and ornamentals.
Mancozeb has annual total consumption of 190-200,000 metric tonne and annual sales of ~$1 billion.
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