The contribution of the agriculture sector to India's GDP has increased over the years. The percentage share of GVA (Gross Value Add) of agriculture & allied sector to total economy was 17.6 percent in FY 2018-19, 18.4 percent in FY 2019-20, and 20.2 percent in FY 2021-22. This increase is due to the increased government initiatives with respect to the agriculture sector.

The government has taken several steps for increasing investment in the agriculture sector such as enhanced institutional credit to farmers; promotion of scientific warehousing infrastructure for increasing shelf life of agricultural produce; setting up of Agri-tech Infrastructure Fund for making farming competitive and profitable; developing commercial organic farming, etc.

The government is also implementing various schemes for supply of farm inputs, like seeds, fertilizers, agricultural machinery & equipment, irrigation facilities, institutional credit, etc., at subsidized rates to the farmers in the country. The government has recently taken several steps for increasing investment and growth in the agriculture sector which include creation of Long Term Irrigation Fund (LTIF), Micro Irrigation Fund for water use efficiency, promotion of commercial organic farming, etc.

The impact of climate change is now more evident than ever due to global warming. Increase in temperatures, changes in precipitation patterns, changes in weather, and reduction in water availability can have a big impact on agriculture in terms of disrupting food availability, affecting food quality, and reducing agriculture productivity.

Every aspect of the Indian economy is now under direct or indirect influence of agriculture so one has to take care of climatic variations affecting monsoon patterns, heat and cold waves, and most importantly, pests so that Indian GDP can show double digit growth.

The quantity and quality of annual food production affected by insects, diseases, weeds, fungi, and other pests due to changing weather conditions is significant. One of the most vital offerings from the chemical industry are crop protection products which work towards controlling pests and diseases, which otherwise can consume, infect, and damage produce. India is one of the world’s largest producers of agrochemicals, and with the help of research and innovation, the industry has gained tremendous potential for development, as the market gears up for robust growth.

The India Story

In the past few years, Indian agriculture has advanced by leaps and bounds, whereby the food grain output along with pulses, natural fibres, sugarcane, vegetables, and fruits has increased sharply. Even today, we are counted amongst the top exporters of agricultural produce owing to an equivalent progress in the crop protection industry.

While the government has recognised the potential of agrochemicals, identifying it as one of the champion pillars of its economy, India also plays a significant role in the global supply chain. As it strides ahead, India’s crop protection sector is now utilising its R&D facilities, to develop newer products that are safer, more effective, and on par with international standards. With its infrastructure and regulatory system creating an environment conducive to promoting the category, India is on the path to be the global agrochemical manufacturing hub.

The demand for food grains and increasing awareness about the need for crop protection chemicals to arrest crop loss are two of the major factors driving growth in the protection sector. However, this is not without its challenges: cost and investments required for R&D, a sub-optimum distribution system, and spurious products available at cheaper prices. The opportunity rests in increase in utilisation, creating an impetus for exports and expansion of product portfolios – all achievable in the short and long term, with the right push in the form of timely and adequate government policies.

Developing Sustainable Solutions

The use of silicas has led to considerable improvement in the efficiency of plant protection products, and the active ingredients in these new formulations has had absolutely no adverse effect on performance. Liquid formulations, developed to improve safe handling of active ingredients, occupy an important share in the pesticides market. At the same time, solid agrochemical formulations in crop protection (herbicide, insecticide, and fungicide) and seed treatment-formulations (insecticide, fungicide, and biocide) have been known for many years in the industry.

The range of solutions for the agriculture industry is creative and innovative, given that our primary objective is generating sustainable high yields. This is what drives us to develop and improve plant protection formulations. Our solutions, services, and products for the agriculture market have led us to contribute to sustainable development and growth, even as the biggest sub-categories for produce—health and nutrition—unfolds.

The Way Forward

On the one hand we’re looking at the government’s food security objectives given India’s vast agro climatic diversity, limited farmland, and growing population. innovation, powered by R&D, exports, and becoming a global supply hub – the case for the crop protection chemicals sector is getting stronger with time. It also stands to support the objectives of ‘Aatmanirbhar Bharat’, given our talent pool of qualified scientists and technicians, increasing investments, and technological capabilities.

Even as Evonik continues to research, develop, and launch newer, safer and better products, there is a tremendous expectation from the policy climate to devise initiatives like the Production Linked Incentives (PLI) Scheme. Not only does it stand to build and enhance capacity, but also boost employment, and fortify ‘Make in India’ prowess. Either way, Evonik is excited to step into the next decade, and offer its expertise for growth for the larger benefit of the sector, economy, and country.