Meghmani Organics: Situation toughens with 27-pesticide ban

On Thursday, chemical manufacturing company, Meghmani Organics Limited, issued a press note about the impact on its overall performance from the government's ban on 27 pesticides. The said ban covers the import, manufacture, sale, transport and use of these 27 chemicals which can be sub-classified into 12 insecticides, 8 fungicides and 7 herbicides.

The ban was neither anticipated by the company nor its industry peers as these chemicals had a large share in both, the domestic and international markets. The regulatory notification had mentioned that the reason for the ban was the lack of submission of complete data pertaining to bio-efficacy, residue, toxicity, etc.

Based on the banned chemicals' historical contribution in its total revenues, the company estimates a 12 to 15 per cent impact on revenue from the ban. Products such as Chlorpyrifos and 2,4-D are expected to be affected badly. This step will increase the difficulty of Meghmani's situation as it is already facing a challenge of raw material import from China.

The company's stock closed in green on Thursday at Rs 49.65, with gains of 0.81 per cent on BSE.