2. Flow of Presentation.
• Introduction
• Global Market Overview
• Indian Market Overview
• Bio pesticide
• Supply Chain
• Challenges
• Regulation
3. Introduction
•PEST: A pest may be insect, rodent, nematode, fungus, or weed.
•Pesticides or crop protection products, also known as agro–chemicals are
products that preserve crops from pests, diseases and weeds.
•Agrochemicals are substances manufactured through chemical or
biochemical processes containing the active ingredient, in a definite
concentration along with other materials which improve its performance and
increase safety.
Losses caused by different pests (%) •25% to 40% of world crop output is
lost due to the attack of pests, weeds
and diseases.
•For each acre of land there are 50 to
300 million buried weeds
•A crop and plant have to compete with
30,000 species of weeds, 3,000 species
of nematodes and 100,000 species of
plant eating insects.
4. Cont...
• The industry is estimated to reduce overall potential pre-harvest wheat
loss of 50% to an actual loss of 29%.
• Some 20% of the entire world's agricultural production would be lost to
post-harvest pest attacks if it were not for crop protection chemicals.
• To minimize these losses and to enhance yields it is essential to use crop
protection chemicals.
• There are broadly 5 categories of crop protection products:
• Insecticides
• Herbicides
• Fungicides
• Bio-pesticides
• Others (Nematicides, Rodenticides etc.)
5. Global Market Overview
• Expected to grow at a CAGR of
5.4% p.a
• The Global market size of the
industry is around 48Bn USD.
• The size is expected to reach
71.3Bn USD by the year 2018.
•Europe has the largest share in
the agrochemical market followed by
Asia, Latin America and North
America.
•the crop protection chemicals market
has reached its saturation in
developed regions such as North
America and Western EuropeConsumption: Continent wise
6. Cont...
• .
• Insecticides are more prevalent in Asian countries. This is due to higher
growth of cotton, cereal, fruits and vegetables in these regions which have
higher incidence of insect attacks.
• Germany($3.6Bn), France($3.5Bn), US($3.3Bn), China($2.8Bn) and
Belgium($2.1Bn) are the largest exporters of crop protection products.
• Brazil($2.2Bn), Canada($1.2Bn), United Kingdom($0.9Bn), Italy($0.9Bn)
and Spain($0.8Bn) are the major importers.
•Herbicides are the most widely used
agrochemical products globally(44%),
followed by fungicides(27%) and
insecticides(22%).
•major markets for herbicides are North
America and Europe due to the
favorable climatic conditions in these
regions
Product categorization of pesticide Industry
7. Cont…
Top molecules in top 3 Product categories of pesticide are:
Distribution of global crop protection market - Crop wise
•Globally, fruits and vegetables and
cereals account for the largest share of
the crop protection industry.
•Share of Fruits and vegetables is
largest(26%) followed by Cereals(18%)
and Maize(13%)
8.
9. Global Industry Challenges
• Evolution of biotechnology: Development of genetically modified
crops in recent years, especially for pest resistance would result
in relatively lesser need for traditional crop protection
chemicals.
• Regulations: Stringent environmental regulations across all
countries increase the cost of developing new products. These
regulations are primarily affecting the older products while at
the same time resulting in delay in introduction of new products.
• Acquisitions : Larger companies are acquiring/ entering into
strategic alliances with smaller companies to increase their
market reach. This poses a threat to local companies who are
forced to reduce pricesin order to compete, thereby leading to
lower margins.
10. Indian market overview
• India is the fourth largest producer of crop protection chemicals
globally, after United States, Japan & China.
• The Indian pesticide industry is estimated to be USD 4.1 billion.
• Expected to grow at a CAGR of 12% to reach USD 7.1 billion by
FY18.
• The exports currently constitute almost 50% of the Indian crop
protection industry.
• Expected to grow at a CAGR of 16% to reach USD 4.2 billion by FY18
• There were about 125 technical grade manufacturers, including
about 10 multinationals, more than 800 formulators and over
1,45,000 distributors in India in FY12.
• More than60 technical grade pesticides are being manufactured
indigenously.
11. Cont…
• The Indian crop protection industry is dominated by the generic
products with more than 80% of the non- patented molecules.
•Top ten companies control almost 75-80% of the market share.
The market share of large players depends primarily on product
portfolio and introduction of new molecules.
Per capita consumption of pesticides (Kg/ ha) •The per capita
consumption of crop
protection products in
India is amongst the
lowest in the world.
•This is creating
tremendous opportunity
for the growth of crop
protection industry in
India.
12. Cont… •The Indian crop protection
market is dominated by the
Insecticides which form
almost 60% of the
domestic crop protection
chemicals market.
•As the weeds grow in
damp and warm weather
and die in cold seasons,
the sale of herbicides is
seasonal.
• Increasing labour costs
and shortage are the key
growth drivers for the
herbicides.
Crop protection market split, India
• Biopesticides constitute only 3% of the Indian crop protection market, they
provide significant growth opportunities due to increasing concern of safety
and toxicity of pesticides, stringent regulations and government support.
13. Cont…
Top molecules in Product categories of pesticide are:
• The major applications are found in rice and cotton crops.
•Fungicides and Herbicides are the largest growing segments accounting for
18% and 16% respectively of the total crop protection chemicals market.
• Rice and wheat crops are the major application areas of herbicides.
• The fungicides find applications in fruits, vegetables and rise and their
increasing usage is due to shift in agriculture from cash crops to fruits
and vegetables and government support for exports.
14. •Andhra Pradesh, Maharashtra and Punjab are the top three states
contributing to 50% of the pesticide consumption in India.
•Andhra Pradesh is the leading consumer with 24% share.
•The top seven states together account for more than 70% of the crop
protection chemicals usage in India.
15. Bio pesticide
• Biological origin i.e., viruses, bacteria, pheromones, plant or animal
compounds.
• highly specific, affecting only the targeted pest or closely related
pests and do not harm humans or beneficial organisms.
• The global market for biopesticides was valued at USD 1.5Bn in
FY13.
• expected to grow at a CAGR of 15.5% to reach USD 3.2 Bn by FY18.
• Asia and Europe are the fastest growing markets and are expected
to grow at CAGR of 14.2% and 16% respectively.
• The Indian market currently stands at USD 0.16 billion and is
expected to grow to USD 0.35 billion by 2018.
• Neem based pesticides, Bacillus thuringiensis, Nuclear Polyhedrosis
Virus and Trichoderma are some of the major biopesticides
produced and used in India.
16. Factors affecting growth of Bio Pesticides
• Positive:
Increasing demand for residue free crop protection products.
Growth in organic food market.
Easy registrations compared to conventional pesticides.
Increasing concern about safety and toxicity of traditional
pesticides.
• Negative:
• Low reliability because of low stability.
• Target specificity.
• Slow in action compared to synthetics.
• Shorter shelf life.
• Erratic availability in the market.
• Already established and strong market of
chemical pesticides.
18. Key Players (India)
Company Name Head office (India) Head office
(International)
Sales (2013-14)
(in crore)
BASF india Mumbai Germany 4430
Dupont Haryana USA 4200
Bayer crop Science Ltd. Mumbai Germany 3283
Dow Agroscience ltd Mumbai USA 1980
PI industries ltd. Haryana India 1595
Rallis India ltd. Mumbai India 1531
Excel Crop Care Ltd. Haryana India 965
Meghmani organic Ltd. Ahmedabad India 893
Insecticide India Ltd. New Delhi India 864
Dhanuka Agritec Ltd. New Delhi India 738
19.
20. KEY GROWTH DRIVERS:
• Increasing demand for food grains
• Limited farmland availability
• Low Productivity
• Growth of horticulture and floriculture
• Increasing exports
• Patent expiry
21. CHALLENGES
• Support for Integrated Pest Management
(IPM) and rising demand for organic farming.
• Threat from Genetically Modified (GM) seeds.
• Low focus on R&D by domestic manufacturers
due to high costs.
• Lack of education and awareness among
farmers.
• Spurious products
• Longer period for registration of innovative
products.
22. REGULATIONS
• In India, the Ministry of Agriculture regulates the manufacture, sale,
import, export and use of pesticides through the 'Insecticides Act, 1968'.
• Central Insecticides Board (CIB) constituted under Section 4 of the Act
advises Central and State Governments on technical matters. The
Registration Committee (RC) constituted under Section 5 of the Act
approves the use of pesticides and new formulations to tackle the pest
problem in Various crops.
• The monitoring of pesticides residue levels in food comes under the
purview of Union Ministry of Health and Family Welfare.
• The Registration Committee (RC) constituted under Section 5 of the Act
approves the use of pesticides and new formulations to tackle the pest
problem in various crops.
• The Environment Act 1986
• BIS Act
• Air act 1981
• Water Act 1974
• Hazardous waste Act 1989
23. Cntd…
Some of the challenges posed by the regulations for the
industry are as below:
• A long period of ~3 years is required for approval of pesticides due
to requirement of data on parameters of Chemistry, Toxicology,
Metabolism, Persistence, Efficacy, and Patents& Trade Marks. The
cost of data generation is ~2 Cr, leading to loss of business
opportunity for the companies in terms of both cost and time.
• Due to lack of inspection staff, inspection of pesticidesis generally
done for top 20 to 25 MNCs or large Indian companies, which
usually follow the procedures and meet the norms. However, this
leaves many small companies and importers products to remain
uninspected.
