July 30 (Reuters) - Agrichemicals company FMC Corp ( FMC )

said on Wednesday it intends to divest its commercial

business in India, in response to challenges in the country.

Shares of the company, which also lowered its forecast for

annual sales, rose over 1% in trading after the bell.

FMC, which makes insecticide and fungicide, saw a sharp drop

in demand in 2023 as high inventory levels of crop chemicals

across several regions had weighed in on earnings.

While the company expects demand to bounce back in most

regions, FMC said the market conditions in India were still

challenging, given high inventory levels.

The South Asian country is also entangled in a trade war

with U.S. President Donald Trump, who earlier today announced a

25% tariff on goods imported from India.

The White House had previously warned India about its high

average applied tariffs - nearly 39% on agricultural products.

FMC said the sale process was underway and is expected to

conclude within the next year. It plans to continue to actively

participate in the Indian market through a supply agreement with

the potential buyer of the business.

FMC said it would also continue running its active

ingredient manufacturing operations in India.

The herbicide maker also said on Wednesday it expects net

sales to be in the range of $4.08 billion to $4.28 billion in

2025, compared to its prior outlook of $4.15 billion to $4.35

billion.