Susceptibility to supplies from China is one of the major concerns

In the past and present there have been times that the reliance on the imports of China have cost the end-use industries dear and for several intermediates and fine chemicals globally the closure of several units in China had led to soaring prices and have also caused delays and disruptions to production which was schedules here. According to one of researched report, the pharmaceutical industries in India have time and again been grieved, as the susceptibility to imported raw materials such as active pharmaceutical ingredients (APIs) and their intermediates are mostly from China.

Moreover, squirts in prices were recently seen in some naphthalene-based dye intermediates like H acid and in China its derivatives was attributed to closure of several manufacturing units.

As per the industry experts, to the chemical industry or to India the dependence on China for import of key raw materials is not only one of its kind and nowadays in the global market, China controls more than 80%. However, the reliance on imports from China is a contemplation of the developments in that country and to create an enabling framework the changes in the Indian pharmaceutical, agrochemical industries and the collective failure of policy makers are here, which will look after a much larger Indian fine chemicals industry.

As per the researched report, the shift in focus of several majors in pharmaceutical and agrochemical markets of India is one of the major reasons for the growing role for Chinese producers in these two industries. Nevertheless, for APIs, technical agrochemicals and their intermediates most of the Indian producers have evacuate their manufacturing base in order to focus on the part of the value chain which will bring them the best value.

On the other hand the leading Indian pharma companies have still continue to make APIs and have got lot more careful about their product line up and have opt to outsource or import the rest. Similarly, leading companies in agrochemicals are also putting more awareness to get their products registered and acknowledged amid farmers.

However the sway of China as a supplier of key raw materials not just to India but to the global pharmaceutical industry is dubious to moderate sooner, in spite of anxiety expressed on this count.

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Optimal usage of agrochemical key to raise food yield of India

Over the next two decades India is set to observe its largest ever phase of urbanisation and would like to keep food security without a scratch by promoting optimal usage of agrochemicals as a key to raise food yield of India. As per the industry experts the major plunge to the process of urbanisation is likely to confer through greater migration to cities with people looking for better opportunities and rising literacy. Moreover, in order to provide accommodation to the rural Indians who are moving out of small towns and villages in seek of better opportunities and growth the new government has precisely put an emphasis on creating new cities.

By expanding the urban space it is explicable that rural land will rapidly be guzzled amid rising pressure on existing cities and improved shove on creating new urban centre. However, this trend in past two decades has now already been seen as a Special Economic Zones (SEZs), industries, new residential localities and an expressway which stands on what were once known as lush green fields growing crops.

According to one of the researched report, in the four decades from 1971 to 2008 urban population of India had gone up by nearly 230 million and now it is anticipated to take only half this time to add the next 250 million. Moreover before the urban expansion, India was on the cusp of a never seen.

Furthermore, the production of food grain in India in the year 2011-12 had recorded 259.29 million tons, however the production of food grain has to be ensuring with rise in per hectare, as we have a glance at the scenario where the land which is under cultivation will decline with an instantaneous increase in population. Nevertheless, the boost in the production in order to congregate the budding need for food grains that can be achieved solitary through larger prominence on agrochemicals and their astute use.

As per the industry experts, aimed at sustaining agricultural practices the agrochemical consist of a wide range of chemical compounds, which contains insecticides to fight against insect attacks, herbicides to root out unwanted weeds that becomes parasites on the key crop and slow down yields, pesticides to protect the crop from pests and rodents and fungicides to prevent loss of crop owing to disease infestation.

However, through promoting optimum use of insecticides and pesticides and rising yield per hectare and minimising loss, one can plan to keep our food security intact in the next two decades as it is of utmost importance.

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Asia the key driver of growth for petrochemical sector of Qatar

Qatar which is known as one of the largest liquefied natural gas producer of the world has branch out its exports away from the oil and gas sector and amid demand from the region fuelling investment and expansion projects, Asia remains an important driver of growth for petrochemical sector of Qatar. Moreover in the Gulf region it is the second largest exporter of chemicals representing 17% of total chemical exports of Gulf Cooperation Council (GCC),as per the Gulf Petrochemicals & Chemicals Association.

According to the Ministry of Development Planning and Statistics, supplies of energy to widen their industrial bases are being used by countries like Qatar and to enhance exports of non-energy goods such as chemicals with petrochemicals and refining activity building up to 40% of manufacturing output.

By the year 2020, plans are taking place to invest around USD 25 billion in petrochemical capacity to produce 23 million tons, in compare to the capacity 16.8 million tons produced in the year 2012, which clutches the rights to market, sell and distribute chemical and polymer products of Qatar globally, according to the industry experts.

As per the recent researched reports, one of the long-term expansion plans has been embarked by the petrochemical industry, based on the assumption that the demand from other emerging markets such as India and China will continue to develop. Whereas the second major expansion process is the USD 6.5 billion Al Karaana plant, which is 80:20 joint venture between the state-owned Qatar Petroleum and Shell, that is due to come on line in the year 2018. The Al Karaana unit will have a production capacity of 2 million tons that will add 25% petrochemical output to Qatar.

However, after an annulment of the USD 6 billion Al Sejeel petrochemicals plant the long-term outlook is less certain but by the end of the decade one of the megaprojects has been targeted to come on line. According to the industry experts, in the medium term prospects for petrochemicals producers are positive, that are helped by the rising demand and the sluggish velocity of new capacity being brought on line in North America.

Moreover, the demand of for high-density polyethylene has significantly increased above global GDP growth for a short time and Asia is noted for the strongest demand growth. Whereas over the next five years the demand growth for high density polyethylene in China is expected to somewhat slow down and is still expected to be above 6%. Moreover the unrelenting growth coupled with moderately few new capacity additions of China is expected to impel rising exports in particularly from the Middle East.

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