In India, a humungous landmass can be utilized for agriculture, but because of the rising influence of urbanization, it is rapidly diminishing, which encourages farmers to use various agrochemicals to raise land productivity and maintain soil health. However, farmers are spending more money on agrochemical seed treatments that assist in ensuring disease resistance as well as better and more uniform germination. With 13,175 Metric Tons (MT), the state of Maharashtra occupies the top spot in terms of chemical pesticide consumption. This is followed by the states of Uttar Pradesh (11688 MT), Telangana (5090 MT), Jammu & Kashmir (4086.32 MT), and so on. As of FY 2022, the biggest volume of agrochemical exports was for insecticides, valued at INR 364.97 billion, followed by fungicides, INR 119.75 billion, and herbicides, INR 72.98 billion.

Key Factors:

The two significant factors propelling growth in the crop protection sector are the need for food grains and growing knowledge regarding the importance of crop protection chemicals to prevent crop loss. India also plays a big part in the global supply chain, and the government has recognized the potential of agrochemicals as one of the champion pillars of its economy.

India's crop protection industry is increasingly making use of its R&D facilities as it advances to create better solutions that are safer, more efficient, and compliant with international standards.

Transformation of Agro-chemicals in India Boosting Export

India is the fourth-largest producer of agrochemicals in the world. Agrochemicals are chemicals used for industrial agriculture. They can be crop protection chemicals such as pesticides, including insecticides, fungicides, and herbicides. In the agrochemical sector, India is one the prominent exporter of agrochemicals in the world, exporting to four main countries – the USA, Japan, China, and Brazil. The most prominent agrochemicals exported include mancozeb, 2,4D, acephate, chlorpyrifos, cypermethrin, and profenos.

According to recently released data by the Ministry of Commerce, India's agrochemical export has experienced remarkable growth over the past six years. The export value has doubled from $2.6 billion in 2017-18 to $5.4 billion in the last financial year. This growth is particularly noteworthy, with a commendable compound annual growth rate (CAGR) of 13%, which stands among the highest in the manufacturing sector.

INDIA’S EXPORT OF AGROCHEMICALS

Source: IBEF

The agrochemicals industry has emerged as a significant contributor to India's export market, reflecting its strong performance and competitiveness on the global stage. The size of India’s agrochemicals export is much higher than the size of India’s agrochemicals domestic market. India has been promoting the use of biopesticides, which are derived from natural sources and considered environmentally friendly. Neem-based products, such as Neem oil and Neem cake, are among the commonly exported bio-pesticides.

Bio-pesticides are the type of pesticides derived from natural elements such as animals, plants, bacteria, and certain minerals. The growing consumer shift towards biological and organic products is a major factor in increasing India’s biopesticides market share. Another major factor influencing the biopesticides industry is the emerging trend of sustainable agriculture and India is creating havoc. This is creating a new venture in export as the need and the necessity of these products are on the rise and India is becoming a booming center for such export.

Outlook:

The transformation of agrochemicals in India has been instrumental in boosting exports and creating a new era in the chemicals industry. The country's focus on agricultural development, coupled with advancements in research and technology, has led to the production of high-quality agrochemicals that meet international standards. This has not only expanded India's export market but has also positioned the nation as a reliable supplier of agrochemicals globally. With a growing demand for agricultural inputs, India's agrochemical sector is poised for further growth, paving the way for increased exports and contributing to the overall development of the chemicals industry. The continued efforts in innovation, sustainability, and market diversification will ensure that India remains a key player in the global agrochemicals market, benefitting both the economy and the agricultural sector. However, in the near term, the sowing progress in ongoing rabi season will be critical in shaping up the demand, India’s rabi sowing continued to progress at a weak pace compared to last year. According to the latest data, the area under total rabi crops stood at 654.9 lakh hectares as on 5th January 2024, down around 1.23% compared to year ago level.

Agro Chemical Companies in India – Financials

Agro Chemical Companies in India – Stock prices