India Goes All In on Biologicals Market

The plant health segment of crop inputs is growing around the world. India is no exception, and with a large part of the country dedicated to agriculture, the market potential has biological product manufacturers excited about the future.   

“Currently it is going to the direction of growth, MNCs in India are slowly recognizing the biological agri-inputs and have started working towards them to expand the portfolio,” says Dhiraj Sakunde, Manager – International Business for Mumbai-based Geolife. 

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While the overall biological market is growing, not all segments have received the same interest from growers. 

“Except for Neem-based biopesticides – all other biopesticides are still in a primordial phase,” says Dr. Venkatesh Devanur, CEO of Hyderabad-based AgriLife. “Biofertilizers are largely in the government purchase program. Not much is purchased by farmers. Biostimulants have big acceptance in India. Humic substances, seaweed fertilizers, and amino acids are very popular. (We see) 100,000 -150,000 MT of bentonite granule-based products are sold with dose rate of 10-15 kg per Ha.” 

Even with a pandemic ravaging societies around the world, these products don’t appear to have been adversely impacted.

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Geolife has seen growth throughout the country and continues to sell its products internationally. Even the COVID-19 pandemic, which has ravaged countries around the world, could not slow the growth of these products. 

“In fact, the Indian market has seen the growth in the demand of organic agri-produce during the pandemic and it has given opportunities to many to start the business,” Sakunde says.  

That doesn’t mean the pandemic hasn’t created a few issues for manufacturers. 

“Manufacturers had to deal with non-agricultural issues the most, such as shortage of manpower and lack of capital in the market, resulting into higher wages and longer credits,” Sakunde says. “As for the products, they did exceptionally well.” 

That enthusiasm for these products is only one factor. Driving that change is a desire for “residue-free harvest that leads to additional income for the farmers,” Sakunde says. “Farmers are paying attention to the soil health, microbial population, and many other factors that make the soil alive.” 

Sakunde notes some reluctance remains on the part of growers who are more familiar with the speed with which more traditional (non-biological) products deliver results. Though effective, some biological solutions don’t provide the quick response growers are used to, though he believes that can be overcome. 

Devanur has seen similar concerns.  

“Microbial biopesticides and bioertilizers are not impressing farmers,” he says. “Farmers want knock down for pesticides and see ‘ideal greening’ effects from fertilizers.” 

On the other hand, Devanur says, biostimulants are impressing farmers because deliverables of such products seem to impress them. 

It will take a change in mindset for growers to understand that while effective biological products do require more time than their traditional counterparts to show results. 

“Results are slower than the chemical alternatives, which makes growers worried about the end result. But that is a very short-term issue,” Sakunde says. “A manufacturer needs to be genuine, disciplined, and regularized while being innovative and research-based to bring more products in the market.”

OPPORTUNITIES 

“The biggest opportunity is to produce the residue-free harvest to ensure the healthy food ecosystem within the country as well as the growing exports,” Sakunde says. “Geolife is also promoting sustainable agriculture by supporting biofertlizers and biologicals. 

In addition to supporting the domestic market, many growers use these products, which enables them to meet exporting requirements in which they hope to sell their crops.  

Growers using Agrilife products have seen good results when it comes to exporting grapes, spices, basmati rice, and chilies, Devanur says. 

CHALLENGES 

Despite the promise of biological products there are some challenges that could slow the rate of growth.  

“Lack of awareness about biologicals can result into hindrance. People are still more confident about chemicals despite the wide studies showing the long-term negative effects of the same,” Sakunde says. 

There are some challenges beyond awareness.  

“Farmers’ expectations are more guided by what they get from chemicals,” Devanur says. “It is not possible to deliver such expectations. Microbial products need some ideal weather conditions to work well,” Devanur says. “It is not possible to get such conditions round the year.”

REGULATORY CONCERNS 

Like in many parts of the world, the government’s approach to registering biological products is a bit of a mixed bag.  

“Registrations for biologicals in India currently are not very strict but well managed,” Sakunde says. “The country needs more regulations to discipline the market.” 

Part of the issue is the varied approach to the different biological segments. Agrilife’s Devanur explains how each segment is treated by the regulatory agency. 

  • Biopesticides have very well-defined regulatory data requirements. Government agricultural institutions offer technology at a very modest cost. And registration of such products is easy. Companies can also generate data and register the products. 
  • Biofertilizers do not need any data and companies can get sales permission from state governments after inspection of manufacturing facilities. 
  • Biostimulants have just come under regulatory review – toxicology, physchem, and bio-efficacy data is needed to register the products. 

“In terms of demand generation, the pandemic has given the boost to the biologicals, and it will further grow exponentially,” Sakunde says. “In terms of regulations, the changes are going to be volatile and increased demand brought the need on radar.”

In doing so, the government can support the biological market in several ways. 

“Government can identify the factors to distinguish the biological products from chemical products and set the parameters to test the biologicals in easier, faster, and economical way,” Sakunde says. “Also, Geolife can declare a few more Indian states as completely organic states.” 

Biological plant health products remain a small piece of the crop input market in India, but that is changing.  

“India is going through a revolution,” Sakunde says. “We need to be patient and positive.”

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