Feb 15: The cypermethrin market went through a rough patch in 1996-97 essentially due to over capacity and tremendous competition on the pricing front. Cypermethrin is essentially used in pesticides for cotton.Industry sources said that cut-throat competition saw cypermethrin (technical) prices fall by over 36 per cent. In 1996, cypermethrin prices were in the region of Rs 1,100 per kg but fell to almost Rs 700 per kg in 1997. Cypermethrin formulation prices also fell from Rs 250 per litre in 1996 to Rs 220 in 1997.
The price war has also shifted to the export front with Indian exporters playing a key role in determining international prices. Indian cypermethrin prices are in the region of $ 20-$25 per kg compared with international prices of $28-$30 per kg.
Sources added that even while overcapacity (estimated at 35 per cent) and too many formulators played a key role in depressing prices, the market itself shrunk significantly due to unseasonal cyclonic rains in October-November 1997, coupled withlong alternate wet/dry periods between July to September, leading to a shift from cotton to rice.
Industry experts, however, expect cypermethrin sales volumes to remain at 1,400 kg for cypermethrin technical, 10,000 kilolitre for cypermethrin 10 EC and 4,500 kilolitre for cypermethrin 25EC. But since formulation prices have dropped by over 10 per cent the final value in 1997-98 would fall to Rs 230 crores from Rs 255.85 crore in the previous year.
Estimated net sales of cypermethrin formulations for 1996-97 in technical terms is 1,400 MT, while inventory in technical terms was 245 MT, taking total sales to 1645 MT.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
