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Indian agrochemicals market to reach $7.5 bn by FY19
Nov. 26, 2015
The Indian crop protection (agrochemicals) industry is estimated to reach $ 7.5 billion by FY19 from $ 4.25 billion in FY14, with an expected CAGR of 12 percent, according to a report ‘Ushering in the 2nd green revolution: Role of crop protection chemicals’ released jointly by FICCI and Tata Strategic Management Group (TSMG) on November 18, 2015.
Rising population is leading to a shift in the food consumption patterns in the country. Shrinking arable land and loss of crops due to pests pose a critical challenge to ensuring food and nutritional security for the future.
On one hand, India wastes a whopping 40 percent of its total food production in value terms and on the other the agricultural workforce in India is expected to reduce to nearly 50 percent in 2020s. Therefore, there is an increasing pressure on agro-sector of India to usher in the second green revolution to ensure the future food security of the nation, stated the report, which was released on the occasion of FICCI’s National Conference on Agrochemicals in New Delhi.
Although agricultural yield per hectare has doubled due to increased use of hybrid seeds, fertiliser, crop protection chemical, etc major challenges to increase the productivity in agro sector still exists. Crop protection chemicals (agrochemicals) will become increasingly important in achieving higher yields and increasing productivity. As per the report, a significant outcome of the prospective second green revolution would be the focus on crop protection. Around 25 percent of the global crop output is lost due to attacks by pests, weeds and diseases which does not augur well for farming.
Currently, exports constitute almost 50 percent of Indian crop protection industry and are expected to grow at a CAGR of 16 percent to reach $ 4.2 billion by FY19, resulting in 60 percent share in Indian crop protection industry. Domestic market, on the other hand, would grow at 8 percent CAGR, as it is predominantly monsoon dependent, to reach $3.3 billion by FY19. Globally, India is fourth largest producer of crop protection chemicals, after the US, Japan and China.
Use of agrochemicals can increase crop productivity by 25-50 percent, by mitigating crop loss due to pest attacks. It is estimated that almost 25 percent of world's agricultural production is lost due to post-harvest pest attacks. The total number of pests attacking major crops has increased significantly from 1940s. For instance, the number of pests which are harmful for crops such as rice has increased from 10 to 17 whereas for wheat have increased from 2 to 19 respectively. This further underscores the importance of agrochemicals use.
In coming years, agrochemicals industry would require developing a collaborative platform in which the academia, government and regulatory bodies, farmers associations, manufacturers and farmers come together to promote safe and judicious usage of pesticides. It is critical for both the government and for crop protection chemicals manufacturers to work closely with the farmers to educate them on judicious use of pesticides and new researches & developments.
“Focus on green chemistry will help in designing new products and processes with sustainability as the core principle. Government should also look at curbing the menace of spurious pesticides on priority basis to ensure higher food production and nutrition security for the nation,” added the report.
Source: Business Standard
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