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India Crop Protection Chemicals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 120 Pages
  • August 2022
  • Region: India
  • Mordor Intelligence
  • ID: 5011852
The Indian crop protection chemicals market is projected to record a CAGR of 4.6% during the forecast period (2022-2027).

The availability of fertilizers was also significantly impacted due to the lockdown imposed owing to the COVID-19 pandemic. The maximum shortage was observed for chemical fertilizers (46%) and biofertilizers (30%) compared to cow dung (18%) and poultry manure (6%), indicating that farmers tended to use more local materials compared to shop-based inputs. Pesticides fell sharply across all states in the country except Uttarakhand. The states of Nagaland (35%), Andhra Pradesh (20.6%), Manipur (20%), and West Bengal (18.1%) reported the sharpest fall in the availability of pesticides. The reasons for the decline in the availability of inputs were disruption in supply due to restrictions on the movement of vehicles and the closure of shops and markets.

Agriculture is the backbone of India's economy as it employs approximately half of India's workforce contribution, accounting for approximately 18.3% of India's GDP in 2020. Farmers lose a significant part of their income as their crops are being attacked by pests and weeds. Crop protection chemicals can play a vital role when judiciously applied, protecting the crop and produce from pests and increasing farm productivity.

In India, synthetic pesticides have been extensively used for alleviating the estimated 45% gross loss of crops due to the infestation of pests and diseases. Major factors driving the Indian market include greater demand for food grains, limited availability of arable land, increasing exports, growth in horticulture and floriculture, and increasing public awareness regarding pesticides and biopesticides.

The biopesticide market is expected to witness the fastest growth compared to synthetic chemicals in India. The biopesticide segment is expected to witness double-digit growth during the forecast period. This segment has more relevance today since trends show that people prefer more eco-friendly options over non-eco-friendly products. Moreover, they are becoming more health-conscious.

Key Market Trends

Growing Need for Enhancing Agricultural Productivity

India is a largely agrarian country, with more than 50% of the population depending on agriculture for their livelihood. However, the contribution of agriculture to the country's economy has been decreasing over the past few years. The primary reason behind this is that crop yields in India are much lower than in North American and European regions, and in similar countries such as China. Presently, India is the fourth-largest manufacturer of agrochemicals after the United States, Japan, and China.

Further, according to the Indian Institute of Vegetable Research, tomato farmers across the country lose up to 65% of their yields to fruit borers every year. The infestation of the pest leads to flower dropping and poor plant health, resulting in poor quality fruiting, thus adversely impacting crop yields.

With the need for increasing crop yields, the demand for crop protection chemicals is expected to increase at a robust rate over the forecast period. The industry has a huge unrealized potential due to the low level of agrochemicals consumption. According to FICCI published report, India's per capita consumption of pesticides was 0.27 kg/hectare during the 2017-2018 period.

Increase in Adoption of Biopesticides

There is an increase in the adoption of biopesticides in India because they are essentially less harmful (as compared to regular synthetic pesticides). Biopesticides typically affect only the target pest and other organisms that are closely related to it, as against broad-spectrum conventional pesticides, which can be harmful to other organisms.

Additionally, the increased public concerns about the probable adverse environmental effects associated with the use of synthetic plant protection products and chemicals encourage the search for technologies and products based on biological processes to control the pests.

The Government of India has adopted Integrated Pest Management Practises (IPM), with more emphasis on the use of biopesticides and pesticides of plant origin like neem formulations. In 2021, in India, the Ministry of Cooperation had made an announcement during the ‘’National Conclave on Natural Farming”, making efforts to set up a network of laboratories in the country that will certify not only organic products but also certify that land in which they were grown is also chemical fertilizer-free.

Major agrochemical companies are investing in R&D to bring new biological products that cater to the needs of Indian farmers. Hence, the promotion of biopesticides by the government, coupled with investment in R&D by major companies, is expected to stimulate the growth of the market during the forecast period.

Competitive Landscape

The Indian crop protection chemicals market is highly competitive, with major players including Bayer AG, UPL Limited, BASF SE, and Rallies India Limited occupying a major share in the region. New product launches, mergers and acquisitions, and partnerships are the major strategies adopted by these leading companies in the market. These companies are also focusing on making an investment in innovations, collaborations, and expansions, in order to increase their market share.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5.1 By Mode of Action
5.1.1 Herbicide
5.1.2 Fungicide
5.1.3 Insecticide
5.1.4 Nematicide
5.1.5 Other Modes of Action
5.2 By Origin
5.2.1 Synthetic
5.2.2 Bio-based
5.3 By Application
5.3.1 Grains and Cereals
5.3.2 Pulses and Oilseeds
5.3.3 Fruits and Vegetables
5.3.4 Commercial Crops
5.3.5 Other Applications
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 BASF SE
6.3.2 Bayer AG
6.3.3 FMC Corporation
6.3.4 UPL Ltd
6.3.5 Rallies India Limited
6.3.6 Nagarjuna Agrichem Ltd
6.3.7 Crystal Crop Protection Ltd
6.3.8 Excel Crop Care Ltd

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Bayer AG
  • FMC Corporation
  • UPL Ltd
  • Rallies India Limited
  • Nagarjuna Agrichem Ltd
  • Crystal Crop Protection Ltd
  • Excel Crop Care Ltd