Fertiliser, seed and tractor-linked companies experienced significant declines on Friday following India's revised monsoon forecast. According to reports from Moneycontrol, shares of these agriculture-linked companies fell up to 6 percent after the government cut its monsoon forecast for the June-September season. The weaker rainfall prediction raised concerns over crop output, rural incomes and demand for agricultural inputs across the sector.
Among fertiliser stocks, Fertilisers and Chemicals Travancore (FACT) emerged as one of the biggest losers, falling 5 percent to ₹877.40 in afternoon trade. As reported by Moneycontrol, National Fertilizers Ltd (NFL) declined 2.8 percent to ₹75.9, while Rashtriya Chemicals & Fertilizers (RCF) dropped 2.6 percent to ₹129.2. Chambal Fertilisers and Chemicals slipped about 2.87 percent to ₹464.4.
The weakness extended beyond fertiliser companies, with Kaveri Seed Company falling 3.5 percent to ₹868.1 as investors assessed the potential impact of lower rainfall on sowing activity and seed demand during the upcoming kharif season. According to Moneycontrol, tractor and farm-equipment manufacturers also witnessed selling pressure, with Escorts Kubota declining around 1 percent to ₹2,851.2 and Eicher Motors falling nearly 3 percent to ₹7,205.5.
Union Agriculture Minister Shivraj Singh Chouhan on Tuesday reviewed the monsoon situation with ministry officials about current status, possible El Niño effect on crops, water availability, seed arrangement, as reported by The Hindu BusinessLine. Chouhan directed that all concerned departments of the Centre and state governments should take advance plans in full earnest so that in case of adverse weather conditions, timely advice to farmers, suitable seeds, alternative crop options are informed and implemented. He also stressed on moisture conservation and water management assistance to farmers.
The sell-off followed the government's revised forecast of cumulative monsoon rainfall at 90 percent of the long-term average, down from the 92 percent estimate issued in April. As reported by Moneycontrol, authorities also warned that El Niño conditions could develop during the monsoon season, a weather phenomenon that is historically associated with weaker rainfall in India. The revised forecast marks the weakest preliminary long-range forecast in nearly three decades, with central India, northwestern India and southern peninsular regions likely to receive below-normal rainfall during the season.
