Published on November 25, 2013

According to one of the reports Pesticide is expected to grow by INR 2,29,800 million with a CAGR OF 14.7%. In the past few years the Indian Pesticide industry has grown by leaps and bounds. Several factors contributing for this growth are growing farmer awareness, improvement in the farmer’s economic condition, emphasizing RnD and improvement in the farming techniques. The other factors reasons for this growth and development of this industry are rising population, inflation in agricultural commodities, favorable rain and constant improvement in the new technologies. Growing technology has not only reduced the labor work but has also improved the production.

Pesticide consumption in India is very unevenly distributed. Northern part accounts for highest consumption while Eastern India accounts for lowest consumption. Government is also very supportive towards this industry. It provides regular subsidies and funds to the industry so that farmer does not face any kind of hassle.

Indian fertilizer industry faces threat mainly because of chemical rates. Here chemicals are imported and then used for manufacturing of fertilizers. Depreciation of rupee in the past few months has resulted in increase in the prices for imported chemicals. On other side they cannot impose these increased charges immediately on consumers. Thus they have to curtail their margins. In the current scenario where rupee has already melted, the government is yet to take any revision call on the subsidy.

For this year where all the sectors have slow paced in their growth due to slowdown in the economy, this industry has gained higher margins. Good rains and heavy monsoon brought a sheer smile on this industry. Now the industry is waiting for winter crops. Pick up in the sales of pesticides and fertilizer has resulted in the clearance of the existing inventories. Moreover after Diwali, this is the only industry which is gaining profit.