Agrochemicals Industry A Game Changer
Rural & Marketing|November 2016

The Indian Agrochemical industry is dominated by insecticides which contribute to 60 percent of the overall demand. Efficient usage of crop protection solutions are the need of the hour. Mohd Mustaquim analyses the challenges which need to be addressed on priority for the sustainability and growth of agriculture sector.

Mohd Mustaquim
Agrochemicals Industry A Game Changer

In the next decade, the sustainability of agriculture is the biggest challenge. Farmers can continue farming only if it becomes profitable. Otherwise, the farming community will lose their interest. There is a need to ensure proper Herbicides yield.

Broadly, yield enhancement is the main challenge. 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 among various other localised factors. There are good emerging trends and solutions for sustainable crop protection which include crop protection chemicals, agronomy, fertigation, seed treatment, biotechnology development among technological interventions.

According to agriculture experts, 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 including insecticides.

Growing Market

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 percent per annum to reach USD 6.3 billion by FY20. According to a Tata Strategic Management Group-FICCI Report,approximately 50 percent 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 percent per annum and exports at 9 percent per annum.

The industry is dominated by insecticides which contribute to 60 percent of the overall demand, followed by fungicides and herbicides which account for 18 percent and 16 percent of the demand respectively.

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