| Indian Pesticides Industry ( ) Report elucidates | | | | patented new molecules. However, with the onset |
| facts about the Indian Pesticides Industry. | | | | of the product patent regime in India since 2005, |
| | | | | the Indian companies will need to increase |
| Agriculture is the lynchpin of the Indian | | | | R&D expense to meet competition from |
| economy. Ensuring food security for more than 1 | | | | MNCs. Alternatively Indian companies can be |
| bn Indian population with diminishing cultivable land | | | | competitive in the area of Contract Research and |
| resource is a herculean task. This necessitates | | | | Manufacturing Services (CRAMS). |
| use of high yielding variety of seeds, balance use | | | | |
| of fertilisers, judicious use of quality pesticides | | | | With the advent of the Integrated Pest |
| along with education to farmers and the use of | | | | Management (IPM) technique, the use of |
| modern farming techniques. It is estimated that | | | | biopesticides and Genetically Modified (GM) seeds |
| India approximately loses 18% of the crop yield | | | | has increased. Globally, GM seeds are used mainly |
| valued at Rs.900 bn due to pest attack each | | | | for commercial crops like cotton, maize, soyabean |
| year. The use of pesticides help to reduce the | | | | and canola. In India, Bt cotton is widely used and |
| crop losses, provide economic benefits to | | | | the acreage stood at 6.20 mn ha for 2007, a |
| farmers, reduce soil erosion and help in ensuring | | | | growth of 63% over the previous year. Use of |
| food safety & security for the nation. | | | | GM seeds may diminish the use of insecticides but |
| | | | | the use of herbicides may improve. |
| The Indian pesticide industry with 85,000 MT of | | | | |
| production during FY 07 is ranked second in Asia | | | | The demand for pesticides can be augmented |
| (behind China) and twelfth globally. In value terms, | | | | only through sustainable growth in agriculture. With |
| the size of the Indian pesticide industry was | | | | the government’s focus on development of |
| estimated at Rs.74 bn for 2007, including exports | | | | the agriculture sector, the industry may see a |
| of Rs.29 bn. | | | | better future. The Indian pesticide industry is also |
| | | | | likely to move towards the global product mix, |
| Globally, due to consolidation in the industry, the | | | | with an increase in the use of herbicides and |
| top five global MNCs control almost 78% of the | | | | fungicides. Exports will continue to remain the |
| market. In India, the industry is very fragmented | | | | growth driver. |
| with about 30-40 large manufacturers and about | | | | |
| 400 formulators. | | | | The report provides the following details |
| | | | | |
| The per hectare consumption of pesticide is low | | | | The current state of the Indian Pesticide |
| in India at 381 grams when compared to the | | | | industry with past trends. |
| world average of 500 grams. Low consumption | | | | Types of pesticides and rationale for their usage. |
| can be attributed to fragmented land holdings, low | | | | Safety Aspects – human and environment |
| level of irrigation, dependence on monsoons, low | | | | safety due to use of pesticides. Impact of |
| awareness among farmers about the benefits of | | | | nonjudicious usage and steps to be undertaken |
| usage of pesticides etc. India, being a tropical | | | | for judicious usage. |
| country, the consumption pattern is also more | | | | Industry features elaborated with respect to |
| skewed towards insecticides which accounted for | | | | seasonality of demand, fragmented structure, low |
| 64% of the total pesticide consumption in FY07. | | | | R&D expense and regulatory framework. |
| | | | | Demand drivers, statewise, categorywise and |
| India due to its inherent strength of low-cost | | | | cropwise pesticides consumed for the period FY |
| manufacturing and qualified low-cost manpower is | | | | 97 to FY 06. |
| a net exporter of pesticides to countries such as | | | | Import – Export trend with quantitative and |
| USA and some European & African countries. | | | | price data for the period FY 01 to FY 08. |
| Exports formed 39% of total industry turnover in | | | | Details on marketing strategies adopted by |
| FY07 and have grown at a Compounded Annual | | | | Indian companies, their market share, cost |
| Growth Rate (CAGR) of 18% from FY 03 to FY | | | | analysis and key products/brands. |
| 07. | | | | Use of bio-pesticides and Genetically Modified |
| | | | | (GM) seeds and its impact on the domestic |
| Prior to 2005, i.e. in the process patent regime, | | | | pesticides industry. |
| Indian companies focused on applied research and | | | | Data on global pesticides consumption from |
| concentrated on marketing generic and off-patent | | | | 2003 to 2007 and of GM seeds from 2002 to |
| products. Due to this, the R&D expense by | | | | 2007. |
| Indian companies was lower at approximately 1% | | | | A brief overview of five major pesticide |
| of turnover. Global companies focused on high-end | | | | companies in India with their three years latest |
| specialty products and dominated the market for | | | | available financial data. |