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(Sharecast News) - Plant Health Care announced on Thursday that it has signed an agreement with Novozymes South Asia, for the exclusive distribution of 'Harpin ab' for use in sugarcane production in India.
The AIM-traded firm said the first commercial sales under the deal were expected to start in the second half of the year, after receipt of the required regulatory approvals.
It would be the first product introduced into India by Plant Health Care.
The board noted that India is the world's second-largest producer of sugar cane, with around five million hectares under cultivation.
Harpin ab, meanwhile, has been used on more than 180,000 hectares of sugarcane in Brazil since its launch there in 2018.
Evaluated by Novozymes in prior growing seasons in India, the application of Harpin ab to sugar cane bolstered crop yield by more than 10% on average.
Plant Health Care explained that Harpin ab works by triggering the plant's own self-defence systems, in a manner similar to vaccinations in humans, with crops responding with improved quality, nutrient use efficiency, tolerance to abiotic stress and ultimately, increased yield.
Being a biological product, Harpin ab has a "very favourable" human and environmental safety profile, the board added.
"Building on the success of our Harpin ab product on sugar cane in Brazil, it was natural to launch the product in India - the world's second largest producer of sugarcane," said chief executive officer Jeff Tweedy.
"Novozymes is a leading supplier of biological products to sugar cane processors in India and will be a strong distribution partner for Plant Health Care's technology.
"Commencing commercial sales in India will materially support continued strong revenue growth at PHC consistent with previously announced aspirations."
At 1425 GMT, shares in Plant Health Care were flat at 11p.
Reporting by Josh White for Sharecast.com.
