Three Keys for India’s Agchem Industry

Posted by |1 October 2012

By Pradip Dave
PMFAI

INDIA is the third largest producer of agrochemicals globally, after the United States and China. The agrochemical industry plays a significant role in Indian economy as 60% of Indian population still depends upon agriculture. The country’s agrochemical market is likely to surpass $4.4 billion by 2015.
The Indian agrochemicals market is highly fragmented with more than 600 formulators, so competition is fierce among a large number of organized sector players. The market has been witnessing mergers and acquisitions with large players buying small manufacturers, and it is expected that this behavior will continue.

Three Competitive Advantages

1. Globally Competitive Products:
In view of the increasing global crop protection market, agrochemical producers, including those in India, are expected to increase their production accordingly to meet the increasing world demand. The Indian insecticides market is the largest production sector, and companies have benefited from its formulation expertise. But the fungicide and herbicide sectors are growing rapidly, which bodes well for the expansion of synthesis considering herbicides make up the largest sector globally.

Pradip Dave has been president of the Pesticide Manufacturers and Formulators Association of India for more than 20 years. He is chairman of AIMCO Pesticides and an editorial advisor to Farm Chemicals International.