The Hindu Business Line : Olympics in China hits Indian pesticide units

Hyderabad, June 6 Most of the farmers in the country may not be aware that Beijing is hosting the Olympics this year. Perhaps, they also don’t know that the Beijing Olympics has a direct impact on the spiralling prices of pesticides that almost went up by 60-70 per cent in the last few months.

China, a major exporter of certain basic chemicals that go into a number of pesticides and fungicides, has shut down over 1,800 chemical manufacturing units ahead of the Olympics scheduled for August 2008.

“This was to address the health concerns of the players who will be arriving from all over the world,” Mr M. Rajamahender Reddy, Secretary of Federation of Pesticides Manufacturers’ Association, said.

The decision proved to be a big blow to the Rs 6,000-crore Indian pesticide manufacturers, particularly the small and medium players, as imports from China had stopped. “The fact that India imports over Rs 1,000-crore worth basic material from China shows how hard it could be for Indian pesticides manufacturers,” he told newspersons here.

It was not just the Olympics factor that resulted in the price rise. “Excise duty of 14.42 per cent and sales tax of 4 per cent too played a role,” he said.

Leaders of a number of associations held a meeting here to discuss issues.

Foremost among those issues was the domination of multi-national companies that were allegedly trying to exclude them by influencing the Central Insecticides Board (CIB) in formulating rules that went against the small players. In order to put up a strong voice, these associations have decided to form an umbrella body called Confederation of All-India Small and Medium Pesticides Manufacturers’ Associations (CAPMA).

Addressing a press conference here, the CAPMA leaders said the MNCs held a sway over the industry with a share of 60 per cent. Dr G. N. Khajuria, Chief Executive of Jai Chemicals, felt that licensing system should be liberalised. He said the system discriminated against the small and medium players.

More Stories on : Pesticides | Sports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Monsoon flows converging again, to strengthen

Green Revolution II needed, and not export curbs

Milk, cereal prices push inflation up further

Karuturi sees Ethiopia entry as vehicle to expand biz globally

Olympics in China hits Indian pesticide units

Areca import c.i.f. value fixed at Rs 35/kg

Spot rubber rules firm

Nilgiris tea production rises 44% in May

Good general demand in Kochi tea sale

Work on Krishna delta modernisation inaugurated

CFTC move to improve convergence of agri spot, futures prices