Agrochemicals Market in India 2024-2029

Agrochemicals are applied on agricultural land to enhance the soil's nutrient content. They are used in all types of agriculture, including gardening, dairy, poultry production, crop shifting, and commercial planting. The chemicals can be fungicides, pesticides, insecticides, and natural herbicides. These chemicals can be included with synthetic fertilizers, hormones, and other artificial growth factors.

Market trends:

Sustainability in agriculture is becoming increasingly crucial for addressing environmental concerns, promoting food security, and enhancing the livelihoods of farmers. Two significant initiatives in India aimed at fostering sustainable agricultural practices are the Paramparagat Krishi Vikas Yojana (PKVY) and the Sub-Mission on Plant Protection and Plant Quarantine (SMPP). These programs focus on organic farming and safe pesticide use, respectively.

Market drivers:

Rising income levels, higher population density, and rapid urbanization are significantly driving the demand for fresh food and agricultural products. This heightened demand is not only fueled by domestic consumption, but also by exports, which have become a crucial component of production strategies. The trending concept of ‘Direct-Farm-To-Kitchen Delivery’ has also enabled farmers and vendors to expand their reach to a wider market. This model not only expands market reach but also encourages producers to enhance their output and adopt modern agricultural practices, including the use of agrochemicals to improve yields and profitability. Such initiatives are crucial in meeting the demands of an increasingly urban population that seeks fresh and locally sourced food options. Urbanization continues to reshape food consumption patterns, with urban populations increasingly demanding diverse and high-value food products. As cities expand, the ratio of food producers to consumers is declining, necessitating innovative solutions in agriculture to sustain food supply while addressing nutritional needs.

Key deterrents to the growth of the market:

Agricultural land is decreasing due to population growth and the expansion of infrastructure projects. This reduction in arable land poses a significant challenge for farmers. Additionally, many Indian farmers face substantial losses due to a lack of understanding of modern precision farming techniques and the responsible use of agrochemicals. The inappropriate frequency and dosage of these applications further exacerbate the situation, often doing more harm than good. While fertilizers and agrochemicals are crucial for safeguarding crops and enhancing yields, many farmers are unaware of the products available in the market or how to apply them effectively. Compounding this issue is a growing wave of misinformation regarding agrochemicals, which misleadingly suggests that they are harmful to the environment.