All the top 20 selling pesticides in the world are generics: Mr. Deepak Shah, Chairman, CCFI

Crop Federation of India (CCFI) is the oldest association of 50 Indian manufacturers who have set up their plants across the country for augmenting production of agrochemicals backed by huge investment in Research & Development . Our members account for 70% of export of agrochemicals from India.

In a compilation sourced by CCFI below is the latest data about the share of generic pesticides vs patented pesticides in the world.

Total agrochemical market $75.5 bn. (2022)

Sale of generics: $70.2 bn.

Sale of patented: $5.3 bn.

Data Source: Agribusiness by S&P Global (Accessed on 3rd July 2024)

The share of generic pesticides has now reached an all-time high of 93% in the world market and, the share of patented pesticide is a mere 7%. The main reason for the poor share is that many new launches (new chemistries) fail to takeoff.

In the year 2010 there were 10 new active ingredients commercially launched. 12 years later (in 2022), their total sale was only $486 mn out of the total market of $75 bn Similar trend is seen for other new active ingredients too.

It is a proven fact that farmers have been using conventional pesticides for years on all crops of economical importance for control of pests and diseases. However with the shortage of labour the herbicide segment has also grown with use on cotton, paddy, wheat, soyabeen etc bringing comfort in farming operations.

Source: Agribusiness by S&P Global (Accessed on 3rd July2024)                                          

On analyzing further it is observed that among the 20 active ingredients, Generic herbicides constitute 55% in terms of sales value followed by generic fungicides with a share of 24%, and lastly insecticides at 21% hold the least sales value.

″We have shared our detailed figures with Shri Faiz Ahmed Kidwai, IAS Addl Secy, in the ministry of agriculture to highlight the importance of generic pesticides not only in India but globally.

″The key take a ways are that generic rules the roost in the global pesticides market and many of the newly launched active ingredients (patented) struggle to establish in the marketplace.

″This is the main reason why the western MNCs are seeking Data Exclusivity in India. Their idea is to milk monopoly profits from patent expired products! India must never agree to granting data exclusivity for post patented and old pesticides.″ stated Mr. Deepak Shah.

Economic importance of generic pesticides

Explaining further Mr. Deepak Shah said ″Generic pesticides have great economic importance in India as they result in significant cost reduction and therefore, most valuable for small and marginal farmers. As they are manufactured in India, they provide employment opportunities, to a variety of skilled and semi-skilled professionals. They help achieving Atmanirbhar and Make in India initiatives by GOI. They are export intensive and fetch valuable foreign exchange (trade surplus) as well.″

In conclusion Mr. Deepak Shah said ″Granting data exclusivity to post patented old pesticides is detrimental to our interest. It will only end up repatriating profits from India to western countries. It would delay the launch of new generics in Indian and global markets by Indian companies.″