Dallas, TX -- (SBWire) -- 01/21/2011 -- With the policies beneficial for agriculture, rural area and the peasants, planting enthusiasm of Chinese peasants have greatly heightened in recent two years. They are making great efforts to increase crop yield. It was expected that the peasants would spend more in agrochemicals, so the fungicide consumption volume might rise accordingly.

The serious drought broke out in Southwest China in recent days has greatly restricted fungicide application there. However, in other aspect, the drought will boost up future prices of agricultural products in the market. In order to earn more profit, peasants in other regions would invest more in guaranteeing good yield. Therefore, fungicide consumption in other regions will rise to some extent, which is good news for Chinese fungicide producers.

Besides, it is predicted that Chinese pesticides exported to the Association of Southeast Asian Nations (ASEAN) will see an increase in 2010, thanks to the tariff cut of ASEAN for Chinese pesticides, as ASEAN is a large destination for Chinese pesticides. The export volume of fungicides will rise accordingly.

Supply of most fungicides is tight at present, thanks to robust demand both at home and abroad. As a result, their prices are also boosted up to some extent.

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