India pesticide market to reach INR 229,800 million by FY 2018

According to the report ” India Pesticides Industry Analysis to 2018”, India Pesticide market is projected to reach INR 229,800 million with a CAGR of 14.7% from FY’2014-FY’2018.

The Indian crop protection market is expected to witness a growth in its consumption owing to factors such as growing farmer awarness, farmers prosperity, inclining demand for organic food, increased focus on R&D, expansion of the contract farming and GDP growth.

“Several factors including rising population, inflating agricultural commodity prices, favourable rain pattern, increased adoption of new technologies and growing farmer preference towards high-value and high-quality products and others are some of the factors expected to drive the industry’s growth in the future” according to the report.

Pesticides industry in India has been broadly segmented into six categories including insecticides, herbicides, fungicides, biopesticides, plant growth regulators and rodenticides. Of the aforementioned, insecticides commanded the highest share of around 45% in the overall pesticides market revenue. In spite of leading the market, the segment’s market share has observed a steady decline over the last few years. Followed by the insecticides, the market share of herbicides was recorded to be the second highest. Herbicide is a swiftly growing sector in the overall pesticides market. Bio-pesticide was observed another important segment in the market. Bio-pesticides, currently constituting a small segment has a immense potential for growth in the years ahead primarily owing to government support and increasing awareness about use of non-toxic, environment friendly pesticides in the country.

The pesticides consumption in India has been unevenly spread across various regions. While the country’s northern region forms majority of the pesticides consumption, the eastern and north eastern region constitue the lowest share. Some of the major pesticides consuming states in India include Andhara Pradesh, UP, Maharashtra Punjab Haryana West Bengal, Gujrat, Kerala and Tamil Nadu.

Indian crop protection industry is capital intensive and highly regulated industry. The industry has been mainly composed of technical grade manufacturers and formulators. The technical grade producers usually sell premium quality chemicals in the bulk to the formulators, who then prepare formulations by mixing the carriers, solvents, surface active agents and other relevant compounds. UPL, Bayer Crop Science, Syngenta, Rallis India and BASF are some of the major companies operating in the industry organized segment constituting the major portion of the industry’s revenues as recorded during FY’2013.