Indian agrochemical market to reach USD 7.5 billion by 2018-19

After Japan, United States and China, India is noted as the fourth largest producer of agrochemical globally and for the Indian economy it is also a significant industry. According to the researched report, in the year 2013 the domestic crop shield industry stood at USD 2.1 billion which has in turn over the five years has grown at around 8% compound annual growth rate (CAGR). In addition, the exports of Indian agrochemical have boost around 17% compound annual growth rate (CAGR) to USD 2 billion, in compare to last five years and had reported for nearly 50% of the total production.

In the fiscal year of 2013-14 the Indian agrochemical market has been estimated at USD 4.25 billion amid exports consisting 50% of the market and in order to reach USD 7.5 billion by the fiscal year 2018-19 it is projected to boost by 12-13% per annum, according to the report released by the Minister of Chemicals & Fertilizers, Ananth Kumar.

In the Indian economy the agrochemical industry plays an important role and is also noted as one of the key component of the speciality chemicals industry. Moreover in India, with the rising demand of dilapidated farmlands and food grains, have increased demands on farm yield enhancement and diminution in crop losses due to pest attacks.

According to one of the researched report by the fiscal year 2017 the crop protection market is expected to boost at around 12% per annum to reach USD 6.8 billion as in the past the crop protection market has experienced a sturdy growth and the demand of export will be largely driven as it is anticipated to grow at 15-16% per annum and at the same time as it also expected to boost its domestic demand by 8-9% per annum.

Moreover in India at present bio-pesticides is the only pesticide market with overall 4.2% and in the near future, it has been projected to reveal an annual growth rate of about 10%. According to the Chemicals & Fertilizers Minster few pesticides which has been banned in the US, could be ban in India also and by increasing the usage of bio-pesticide these have several advantages over conformist pesticides. As they are by and large intrinsically less toxic than conformist pesticide and target pest are normally affected by these chemicals, which are closely related organisms.

In terms of low awareness among farmers where approximately 25-30% of farmers are aware of agro products, Indian agrochemicals industry faces challenges in spite of strong growth drivers and for the industry players, large number of end users reach across the managing inventory, geography & distribution costs is also a challenge.

In past few years the growth in local demand have been outpaced due to exports of agrochemical from India and is now reckoned as one of the leading suppliers  of quality technical agrochemicals at attractive pricing, like Indian pharmaceuticals industry. However, few long term trends in the Indian industries will be posed by new challenged.

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