India is the second
largest nation with a population of 1.3 Bn, and agriculture is the backbone of
its economy which employs more than 50% of the workforce and contributes about
17% of the nation’s GDP.
Now, India is a
leading exporter of agricultural products, with the total agricultural exports
from USD 11.3 Bn in FY10 to USD 33.9 Bn in FY17, and has also become a very
important player on the global market, especially for rice, cotton and sugar.
Even though India has
doubled its yield per hectare in the past decades, it is still facing many
challenges like pest attacks which have caused a 25% loss of the global crop
output. The consumption of pesticides per hectare in India is 0.6kg, much lower
compare to that of China, Japan, USA, France and UK.
To ensure an
increasing crop output and improve the food security of the nation, the better
technology & quality seed, fertilizer, irrigation and crop-protection
chemicals are becoming an important roles to enhance the crop productivity.
As the fourth largest
producer of agrochemicals after USA, Japan and China, the agrochemicals in
India is valued at USD 4.1 Bn, and expected to reach USD 8.1 Bn by FY25.
Insecticides dominate almost 55% of the domestic crop protection chemicals
market with the value about USD 2.3 Bn, also making India become the 13th
largest exporter of pesticides globally.
In addition to
exports to top 8 countries namely USA, Brazil, France, Japan, Australia,
Belgium, China and Netherlands which contribute to about 50% of total
agrochemical exports, the manufacturers could also explore other countries in
South East Asia, Latin America and Africa.
Country Wise Export Trends
chemicals & solutions is a fast developing industry globally open to
innovation. Though the application of agrochemicals in India is presently at
very low level as compared to global norms, the agrochemical sector has huge
potential for growth as it plays a vital role in protecting the crops from
pests and increasing the farm productivity.