Market Size

Industry Structure

The crop protection industry in India is generic in nature with ~80% of the molecules being non patented. Hence, strong distribution network, wide basket of products, timely supply and right pricing act as competitive factors. Crop protection chemicals are manufactured as technical grades and converted into formulations for agricultural use. The crop protection industry consists of technical grade manufacturers, formulators producing the end products, distributors and end use customers. India has about 40 technical manufactures including Multinationals and about 500 formulators in large, medium and small scale.

Domestic crop protection – Product category

Insecticides form the largest segment of the domestic crop protection chemicals market accounting for 55% of the total market. It is mostly dependent on rice and cotton crops. Herbicides are the largest growing segment and currently account for 25% of the total crop protection chemicals market. Sales are seasonal, owing to the fact that weeds flourish in damp, warm weather and die in cold spells. Rice and wheat crops consume the major share of herbicides. Increasing cost of farm labor will drive sales of herbicides going forward. Fungicides, accounting for 18% of the total crop protection market, are used for fruits and vegetables and rice. Farmers moving from cash crops to fruits and vegetables and government support for exports are increasing the fungicides usage.

Domestic Market Size

The major consuming states are Andhra Pradesh, Punjab, Maharashtra, Gujarat, Karnataka and Uttar Pradesh. Major products include Acephate 75% SP, Imidacloprid 17.8% SL, Profenophos 50% EC, Clodinafop 15% WP, Buprofezin 25% SC.

The current domestic agrochemical market is Rs. 120 Bn. The market has been witnessing an annual growth of around 15%. The market size is expected to grow to Rs. 300 Bn by FY 2020.