ADVERTISEMENT

Agrochemicals Sector Update - Diversification To Insulate Companies From Mancozeb Ban In The EU: Motilal Oswal

Agrochemicals Sector Update - Diversification To Insulate Companies From Mancozeb Ban In The EU: Motilal Oswal

A tractor spreads fertilizer onto a field of wheat (Photographer: Chris Ratcliffe/Bloomberg)
A tractor spreads fertilizer onto a field of wheat (Photographer: Chris Ratcliffe/Bloomberg)

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.

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.

Click on the attachment to read the full report:

Motilal Oswal Agrochemicals Sector Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.