The Indian pesticide industry with 85,000 MT of production in FY06-07 is ranked second in Asia (behind China) and twelfth globally. In value terms, the size of the Indian pesticides industry was estimated at Rs. 74 bn for 2007, including exports of Rs.29 bn. The Indian pesticides industry is dominated by insecticides globally where herbicides and fungicides are the key segments.
Pesticides are the last input in the agricultural operation but are important for sustainable development of agriculture. Inspite of the fact that judicious use of pesticides can prevent crop losses and provide economic benefits to the farmers, the pesticide consumption in India is limited to about 25% of the arable land. This abysmally low penetration is largely due to lack of awareness with the farmers regarding benefits of the use of pesticides, fragmented land holdings, farmer’s financial inability to buy the requisite pesticides and negative perception about their use.
This report on the Indian Pesticide Industry provides the latest available statistical data on consumption of pesticides (statewise & categorywise), capacity & production, imports & exports and data on global pesticides consumption, top five MNC sales and Genetically Modified (GM) seeds consumption data. The report provides information on newer techniques of crop protection like Integrated Pest Management (IPM), Biopesticides and GM crops. Elaborate analysis is also presented in the report regarding cost, pricing and profit analysis of key companies in the sector in India along with the company scan. The report also outlines the future demand growth for the industry.
The report is indispensable for any company in the pesticide industry, banks/Financial Institutions (FIs), policy makers, research & academic institutions, other international and national agencies etc. Additionally, the four quarterly updates (Q4FY09 to Q3FY10) accompanying the subscription of the said report would form a potent tool for the subscribers to keep abreast of the happenings in the industry.
It is estimated that India approximately loses 18% of the crop yield valued at Rs.900 bn due to pest attack each year. The use of pesticides help to reduce the crop losses, provide economic benefits to farmers, reduce soil erosion and help in ensuring food safety & security for the nation.
The Indian pesticide industry with 85,000 MT of production during FY 07 is ranked second in Asia (behind China) and twelfth globally. In value terms, the size of the Indian pesticide industry was estimated at Rs.74 bn for 2007, including exports of Rs.29 bn. Globally, due to consolidation in the industry, the top five global MNCs control almost 78% of the market. In India, the industry is very fragmented with about 30-40 large manufacturers and about 400 formulators.
The per hectare consumption of pesticide is low in India at 381 grams when compared to the world average of 500 grams. Low consumption can be attributed to fragmented land holdings, low level of irrigation, dependence on monsoons, low awareness among farmers about the benefits of usage of pesticides etc. India, being a tropical country, the consumption pattern is also more skewed towards insecticides which accounted for 64% of the total pesticide consumption in FY07. India due to its inherent strength of low-cost manufacturing and qualified low-cost manpower is a net exporter of pesticides to countries such as USA and some European & African countries.
Exports formed 39% of total industry turnover in FY07 and have grown at a Compounded Annual Growth Rate (CAGR) of 18% from FY 03 to FY 07. Prior to 2005, i.e. in the process patent regime, Indian companies focused on applied research and concentrated on marketing generic and off-patent products. Due to this, the R&D expense by Indian companies was lower at approximately 1% of turnover. Global companies focused on high-end specialty products and dominated the market for patented new molecules. However, with the onset of the product patent regime in India since 2005, the Indian companies will need to increase R&D expense to meet competition from MNCs. Alternatively Indian
With the advent of the Integrated Pest Management (IPM) technique, the use of biopesticides and Genetically Modified (GM) seeds has increased. Globally, GM seeds are used mainly for commercial crops like cotton, maize, soyabean and canola. In India, Bt cotton is widely used and the acreage stood at 6.20 mn ha for 2007, a growth of 63% over the previous year. Use of GM seeds may diminish the use of insecticides but the use of herbicides may improve.