Has India’s Time Come in the Agrochemicals Market?
23 March 2023 Every time there is a hitch in the supply of products from China, and there have been a few over the past decade, there is talk of India stepping in to fill the gap. And while the Indian agrochemical manufacturers have made some inroads, China has remained the big player in the ag industry.
With the current state of the world, is the country finally ready to take on a larger role?
According to EMR data, the India agrochemicals market size reached a value of almost $6 billion in 2022. The market is further expected to grow at a compound annual growth rate of 8.5% between 2023 and 2028 to reach a value of almost $9.82 billion by 2028.
“Stimulated by favorable domestic policies, the economy, and the investment environment, Indian companies have gone ahead and expanded production capacities, construction of new factories, launch of new products, and investments in building infrastructures,” said Amit Talesra, AVP, International Marketing, Meghmani Organics, which has expanded its current facilities and introduced new products with plans for more.
One of the major policies affecting changes to the country’s ag industry includes “Make in India,” which encourages domestic manufacturing. This is helping to reduce regulatory hurdles and upgrade the infrastructure necessary to boost the agrochemical sector. Before the pandemic, Indian agrochemical companies imported more than half of their raw materials, packaging, intermediaries and finished products from China.
“Backward integration spurred by the pandemic and buoyed by the ‘Make in India’ initiative, has helped change the status of Indian companies as serious players in the global market and is a step closer to making India a self-reliant supply chain hub,” said Simon-Thorsten Wiebusch, Country Divisional Head, Crop Science Division of Bayer in India, Bangladesh Sri Lanka.
Indian companies have been innovating the production process technology for off-patent molecules with backward integration over the past five years to reduce reliance on China.
The changes have already elicited results.
Indian agrochemical companies are manufacturing molecules of organophosphorus, carbon disulphide, and pyrethroid chemistries by complete backward integration and “are known worldwide for impeccable quality and cost effectiveness,” Wiebusch said. “These products have got global acceptance and are exported in huge quantities from India. The current export turnover of India is $3 billion.”
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