Indian agrochemical sector to grow at 7.5% annually by FY20

India is the fourth largest global producer of agrochemicals after the US, Japan and China. This segment generated a value of USD 4.4 billion in FY15 and is expected to grow at 7.5% per annum to reach USD 6.3 billion by FY20.

India is the fourth largest global producer of agrochemicals after the US, Japan and China. This segment  generated  a  value of  USD  4.4  billion  in  FY15  and  is  expected  to  grow  at  7.5%  per annum  to  reach  USD  6.3  billion  by  FY20.  Approximately 50% of the  demand  comes  from domestic consumers and the rest from exports. During the same period, the domestic demand is expected to grow at 6.5% per annum and exports at 9% per annum, said a report titled “Next Generation Indian Agriculture: Role of Crop Protection Solutions” released by by  the Federation   of   Indian   Chambers   of   Commerce   and   Industry   (FICCI)   and   TATA   Strategic Management  Group  (TSMG)  to  highlight  the  role  of  crop  protection  and  crop  enhancement solutions for sustainable growth of agriculture in India.

With  a  present  size  of  1.32  billion,  India  currently  supports  nearly  17.84%  of  the  world population, with 2.4% land resources and 4 % of water resources. It is also noted that about 15 -25% potential crop production is lost due to pests, weeds and diseases. Continuously shrinking arable land,  slow  pace  of  improvement  in  farm  productivity  and  loss  /  wastage  of  crops  both during  and  post-harvest poses  a  critical  challenge  to ensuring food  and nutritional  security  for the nation. To add to the complexity, the agricultural workforce in India is expected to reduce by 50% in  the  coming  decade.  A combination of Crop protection and Crop enhancement solutions will be critical.

Although  yield  per  hectare  has  doubled  in  the  past  years,  Indian  agriculture  is  still  grappling with  challenges  like  high  monsoon  dependency,  unpredictable  weather  patterns,  reduction  in arable  land,  low  per  hectare  yield,  increase  in  pest  attacks,  etc.  These indeed are challenging times.  There  are  good  emerging  trends  and  solutions  for  sustainable  crop  protection  which include  crop  protection  chemicals,  agronomy,  fertigation,  seed  treatment,  bio-technology development  etc.

The  next  generation  agriculture  in  the  country  will  have  to  encompass  all such  possible  solutions  using  the  best  mode  in  a  given  scenario.

The  sector  faces  many challenges  and  solution  to  same  can  lead  to  India  becoming  a  global  manufacturing  hub  of quality crop protection chemicals.

Supporting Crop Protection Industry:

FY15  has  been  a  challenging  year  for  crop  protection  chemicals  market  in  India  as  well  as throughout  the  world.  Weak  rainfall/  droughts,  severe  decline  in  the  commodity  prices,  and currency   devaluation   in   several   countries   have   affected   the   growth   of   crop   protection chemicals  market.  The  impact  of  these  factors  is  likely  to  weigh  on  the  sector  for  few  more years.  At  present,  per  hectare  consumption  of  pesticides  in  India  is  amongst  the  lowest  in the world  and  stands  at0.6  kg/ha  against  5-7  kg/ha  in  the  UK  and  ~  13  kg/ha  in  China.  With  the increase  in  awareness  and  market  penetration,  consumption  is  likely  to  improve  in  the  near future.  Still  there  are  challenges  like  spurious  products,  low  focus  on  R&D  by  domestic manufacturers, inefficiencies in the supply chain etc. which need to be addressed on priority.

In addition to the use of crop protection chemicals, Indian agriculture needs to focus on specific solutions to enhance crop productivity.  It  is  imperative  for  us  to  adopt  efficient  agronomy practices,  fertigation,  seed  treatment,  biotechnology  and  plasticulture  to  reduce  wastage  and attain  self-sufficiency  in  agricultural  output.  Integrated  pest  management  is  one  of  the  most effective and sustainable ways of tackling the issue of pests and diseases in Indian agriculture.Given  the  geographic  expanse  of  India,  digital  technology  based  solutions  could  be  one  of the efficient  routes  to  reach  the  farmers  and  equip  them  with  information  in  real  time  which  will help  in  arriving  to  better  and  timely  farming  related  decisions.  Indian agriculture ecosystem is realizing his but it will take time for these technologies to be embedded into everyday farming practice.