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Significance of India in Global Supply Chain of Crop Protection Chemicalsqrcode

Sep. 18, 2018

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Sep. 18, 2018

Significance of India in Global Supply Chain of Crop Protection Chemicals

The most upcoming dependable face as Global Crop Protection Chemical sourcing centre is of course India. The various takeovers of Indian companies by Japanese Chemical Giants signify the rich technological backups of India and interest of Indian companies to participate in Global supply chain. Since many years, India is supplying very good quality formulations of generic pesticides to different markets, but now time has come to become strong in backward integration to participate more significantly in global market.

As such Indian formulations are popular in global markets but suffer due to limitation of product diversity which is actually originated due to less number of new generations of active ingredients in Indian product portfolio.

Anyway, the changing scenario in Global Trade has put a significant impact on Agrochemical Business in India. Though the country is still facing a lot of challenge for availability of intermediate and technical products due to high dependency on Chinese Production, but there is some internal reorientation of production base shifting from China to India which is in the topic of discussion in many forums.

Three significant changes- USA position on Chinese Import, the strict pollution norms in China with its commitment to green environment and India’s stand to boost the “Make in India” are playing synergistic role, in consequences to grow India as the next generation sourcing hub for crop protection chemicals. Many Indian basic chemicals manufacturers have also increasing their capacities to minimize the supply-demand gap as they are now rewarded with better prices globally.

Though the strict policy of withholding import registration in India has loosen to some extent but the newly framed guideline for registration of agrochemicals surely supports the cost effective registration of manufacturing which is good to support Indian manufacturing. Hence strategically overseas manufacturer may consider India as their next manufacturing destination for generic products ensuring the availability of intermediates.

However, mostly new molecules and formulations are entering into India through import route than manufacturing route. Though many Indian companies registered new molecules & their formulations for manufacturing to export to different market, but Indian farmers are still have no access to such developed technologies.

Hence though India has developed in last one year, it needs some new generation molecules to get produced in India and strong backward integration of safer molecules to become independent in production. Indian manufacturers may focus on production of recent off-patent product products to minimize the supply-demand gap.

The concept of India as a sourcing partner has to be believed & supported by the domestic manufacturer more seriously.

The new Govt policy, allowances of 100% FDI in chemical sectors, allocations of chemicals zones are all significant development to support “Make in India” and hence it may be so that a data protection guideline for first time technical indigenous manufacturing for any new technical & its formulation and not necessarily the data protection for registration through import, will actually support the true and progressive manufacturer of the country. Else, India will continue only to produce some generic products as it is doing since last few decades.

The article is from 2018 INDIA PESTICIDE SUPPLIERS GUIDE magazine, download for more articles here:

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