Published on October 21, 2013

The pesticides industry in India is a Rs. 13,000 Crore sector and is said to be growing at 8-10% annually. According to the Tata strategic management group and FICCI’s joint research the industry is expected to reached Rs. 39,000 crore by the year 2016-17.

This growth in the past few years can be attributed to the various patents that have expired and are going to expire by the year 2020, making way for a huge market for generic players. About Rs. 61,000 crore worth of patents for more than 50 products are expected to taken off the list and manufacturing is more than likely to move to emerging market of India. Some of the Japanese companies have already shifted base and have forged alliances with domestic firms. Globally, Japanese companies make up to 10% of the total market. This might prove really good for the growth of this industry.

Domestically, the market was a bit unstable due to rupee fluctuation in past month, which affected the industry in the way, that it could not take benefit of the fact that internationally urea prices had declined. Indian continent received abundant rainfall this year, thus the industry flourished.

Though, this industry is a lot under the scanner due to the toxic levels in the crops and high usage of pesticides. Up to Rs. 100,000 crore worth of crops are destroyed due to improper use or inadequate use of pesticides. Here, the problems lies on both the sides of the line, many farmers are yet to understand the way pesticides are to be used, and the politics around the buying of pesticides and seeds.

There is a concept of organic farming that is rising in the minds of the users and even the awareness of bio-pesticides. Neem based pesticides are growing at a rate of 7-9% annually.

Overall, this industry is growing at a good rate with good future prospects in front of it.