India -- fastest growing global crop protection market

Date:12-01-2020

India is an agrarian country. Here around 58 per cent people are dependent on agriculture. Although the cultivated area has been reduced due to urbanization and housing requirements, its fast growing population needs increase in agriculture productivity. Use of crop protection measures is to be increased to bring more area under its umbrella. 

At present only 25 to 30 percent of the cultivated area comes under the umbrella of crop protection chemicals. Encouraging usage of crop protection products is most likely to prevent crop losses which is at present estimated to be of the value of Rs.90,000 crores as per Government statistics. As a rough estimate more than 20% of our crops are lost due to insect pests, diseases and weeds every year.

Presently the total consumption of crop protection chemicals used in the country is 61000 metric ton. Of the total crop protection chemicals consumption insecticides account for 60% percent while fungicides and herbicides account for 18 and 16 percent respectively. As compared to global consumption India’s share of crop protection market is only about three percent with per hectare use of  meagre 600 gm as compared to world average of 3kg per hectare,

However, there has been a gradual increase in the use of crop protection measures in recent days. There is great potential for new crop protection molecules. Recent policy of Indian Government for doubling of income of farmers renders good scope for growth of crop protection market in the country as it is one of the main major factor for increasing agricultural productivity. Agrochemical Industry in India has a resilient capacity base and it is expected to reach 1,493,300 tonnes by 2022.

New molecules as well as generics with better efficacy and being safe have good potential for growth. Policy of Atmanirbhar Bharat is being business friendly will help the overseas companies to manufacture their products in India at relatively low cost and thus may fetch a good market share. 

Indian government recent policy of “Make in India” has vast scope for the foreign companies willing to expand their business to come over here and invest in manufacture of both new molecules and generics. There has been many consolidation and synergistic partnership  between MNCs and Indian companies. As well in recent past and India is becoming a global hub for manufacture of agrochemicals.

There is no dearth of manpower with required skills to be employed in the manufacturing sector and various initiatives of Skill Development Council under the government’s “Kaushal Vikash Yojana” has been generating skilled manpower in tandem with the requirement of Industries is likely to boost the manufacture sector. 

Initiative of Agriculture Skill Council of India (ASCI) to impart training to the farmers’ extension workers, sprayman is also helping to increase the use of agrochemicals in safe and pragmatic ways and is likely to remove many of the myths against the agrochemicals use in the country resulting into increased consumption of safe agrochemicals

India with strong basic manufacturing facilities and process technology offers quality pesticides formulations to the global market. Many MNCs are already sourcing generic products from India (in fact MNCs dependence on generics is about 40-50%. Agrochemicals to the tune of US$ 4.1 billion are expected to go off-patent recently, which provides great opportunities to add large number of formulations specially environment friendly formulations to existing range of generics  with more innovations, in which India has the technical competence.

 

SWOT :

1. The country has huge area under cultivation (around 195 m ha)

2. With the need for increasing crop productivity, the demand for crop protection chemicals is expected to increase.

3. The crop protection market in India is growing with a CAGR of  more than 4% from last few years. 

4. Awareness among the farmers regarding loss of crops due to not using pesticides.

5. The Indian market will slowly see increased penetration of crop protection products, which will lead to higher yields.

6. Labour shortage, rising labour costs are likely to accelerate the growth in the use of herbicides.

7. Growth in Indian horticulture industry provides good opportunity of growth of fungicides market in the country.

8. Lack of Education and Awareness among Farmers pose a major problem for growth of market, hesitation for adopting new products is another problem. It is important to educate the farmers about the appropriate kind of pesticide, its dosage and quantity and application frequency.

9. The main intermediary between the farmers and the manufacturers are the retailers who don’t have adequate technical expertise and are thus unable to impart proper knowledge transfer.

10. Higher cost of R&D for new  and more effective plant protection chemicals.

11. Strategic alliances between the major players regarding research and development to come up with new molecules.

12. The competition will be gradually  intensified, as increasing awareness among farmers will generate the demand.

13. Some of the punitive clause of proposed PMB is likely to discourage the growth of crop protection market.

14. Recent arbitrarily decisions of the govt. of sudden ban of certain pesticides is also a threat to the growth of crop protection market.

 

ICSCE-2020:

 

Due to global pandemic of covid-19, PMFAI is going to organize it’s 15th International Crop-Science Conference and Exhibition (ICSCE) 2020 from 28-29 January 2021 with extended exhibition for 4 days on 3D Virtual Platform. With the advancement of technology 3D virtual platform for such event has become more and more prevalent nowadays and in fact it is likely to be more preferred to the conventional conferences and exhibition in time to come. It has following merits:

 

a. Saves time of travel

b. Cost of travelling is saved. Fuel is saved

c. Ease in visiting and watching

d. Reproducibility /replay of the presentation etc. according to one’s own time

e. More user-friendly, better interaction

f. It has tremendous flexibility

g. Overall it prevents the spread of the current pandemic

The article is from 2020 INDIA PESTICIDE SUPPLIERS GUIDE magazine.