# Global Crop Prices Rise Up to 30 Percent as Agrochemical Demand Weakens

- URL: https://stocks.freetheai.org/news/global-crop-prices-rise-up-to-30-percent-as-agrochemical-demand-weakens-a2bc4b
- Published: 2026-10-08T07:21:54Z
- Category: earnings; sentiment: bearish; impact: medium
- Symbols: [NSE:PIIND](https://stocks.freetheai.org/symbols/NSE-PIIND), [NSE:UPL](https://stocks.freetheai.org/symbols/NSE-UPL)
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Global prices for major crops climbed sharply during the September quarter, driven primarily by supply chain disruptions in the Black Sea and ongoing conflict in the Middle East. Wheat prices surged by 30 percent year-on-year, while soybean and corn prices increased by 22 percent and 19 percent respectively. However, this rise in crop values has not yet translated into stronger purchasing of crop protection products, leaving global agricultural chemical demand weak.

This divergence is putting significant pressure on chemical manufacturers. Subdued monsoon conditions in India and intense heat waves in overseas markets have slowed agricultural inputs, which is reflected in a 15 percent year-on-year drop in Chinese crop protection export volumes. Consequently, major producers are facing a difficult earnings season. PI Industries Limited (NSE:PIIND) is expected to see its revenue decline by 8 percent and its operating profit fall by 30 percent. Similarly, UPL Limited (NSE:UPL) is projected to record a 5 percent revenue decline, alongside double-digit volume drops in both India and Latin America.

Investors will be watching upcoming September-quarter earnings reports to evaluate how companies are navigating this challenging demand environment. Key areas of focus will include whether easing supply-chain issues can help stabilize margins, how UPL adjusts its inventory strategy in Latin America, and whether weather conditions improve to revive domestic demand.

## Key points

- Wheat, soybean, and corn prices climbed 30 percent, 22 percent, and 19 percent year-on-year respectively in the September quarter due to geopolitical and supply chain disruptions.
- Global demand for agrochemicals remained weak, causing Chinese crop protection export volumes to fall 15 percent year-on-year.
- Adverse weather, including a subdued monsoon in India and overseas heat waves, contributed to the weak demand for agricultural chemicals.
- PI Industries Limited is expected to report an 8 percent revenue decline and a 30 percent drop in operating profit for the September quarter.
- UPL Limited faces an estimated 5 percent revenue drop alongside double-digit volume declines in India and Latin America.

## Questions and answers

### Why are global crop prices rising while agrochemical demand is weak

Crop prices rose due to Black Sea supply disruptions and Middle East conflicts. However, agrochemical demand remains weak due to a subdued monsoon in India and heat waves in overseas markets, meaning higher crop prices have not yet boosted chemical purchases.

### How are PI Industries and UPL expected to perform in the September quarter

PI Industries is projected to see an 8 percent revenue decline and a 30 percent fall in operating profit. UPL is expected to record a 5 percent revenue decline with double-digit volume drops in both India and Latin America.