D&B - Indian Chemical Industry
  
 

Q. What has been the performance of the Indian pesticide industry over the past three years?

A. Indian Pesticide Industry is always on the path of growth. The growth rates in last three years were - (1) in 2006 - 10 to 12% (2) in 2007 - 15 to 18%; and (3) in 2008 15 to 18%.

Q. Could you discuss about the current consumption trends in the domestic market vis vis the global market?

A. Consumption of pesticides in India is very poor as compared to global consumption. One of the reasons is that in India, the cultivated area coming under crop protection umbrella is poor 20%, which result in crop losses due to pests and diseases. Per capita consumption of pesticides in India is one of the lowest, as given in the table below:

Therefore, one of the objectives before us is to bring more and more cultivated area under crop protection umbrella. Presently India is an emerging market for agrochemicals.

Q. What are the steps taken to increase the variety of crops under pesticides in order to prevent huge crop loss each year?

A. The industry is trying its level best to increase the awareness among the farmers on the benefits of judicious use of pesticides to protect crops from the ravages pests and diseases. PMFAI and its members are organising seminars and conferences for distributors, dealers, farmers and end users from time to time, to educate them on safe and judicious use of pesticides and to increase awareness on the benefits of use of pesticides. There needs to be more efforts from the Government, particularly from the State Departments of Agriculture since agriculture is the state subject.

Q. Do you think that the increased usage of the genetically modified crops (GM) for e.g BT Cotton is going to affect the demand for pesticides?

A. In the present scenario, it has not affected the industry, which is visible from the continuous growth of the pesticide industry. I believe that GM crops have not made any big strides in India and are still at the early stage and have a long way to go to make an impact. GM crops have resistance to specific pests, but in the course of its continued use, it also requires use of pesticides to protect against new species as also due to loss of immunity. Continued use of GM seeds result in developing resistance in pests. Considering the hot and humid climatic conditions and insect/pest scenario of our country, the pesticide industry has a great role to play in increasing the agricultural productivity of the country, to feed the growing population.

Q. What is India's share in the global bio-pesticide market and what are the future prospects of organic/biopesticides in India?

A. India's share is very meager. Use of bio-pesticides is just beginning in India and it is required to be handled carefully due to the spurious products where conventional pesticides are mixed with bio pesticides, to show miraculous effect, which is not good for agriculture as also for the industry due to likely residue problems.

Q. In this regard what steps is the industry taking to move from synthetic pesticides to organic pesticides?

A. I do not believe that in organic way we can produce enough to feed the population, such as existing in our country. Therefore, we support use of all viable crop protection technologies including chemical crop protection, to save any crop losses. Presently the whole world is reeling under a severe food crisis. India loses a significant quantity of crops Mr Pradip Dave President, PMFAI 116 due to the ravages of pests and diseases. In few years India will be most populated country in world and to that extend the cultivated area is not getting increased. Our agricultural productivity is very poor compared to the developed nations. Considering growth of our country's population, we have to reach to the standards of developed nations in protecting agricultural and horticultural crops for which increased use of pesticides is very important.

Q. What are the efforts taken by the association to increase India's share in the global export market?

A. PMFAI is the only association working very hard since its inception for export of pesticides of Indian origin. In 1997 when PMFAI organised its first Asia Pacific Crop Protection Conference in Mumbai, our exports were only Rs 270 crores which has reached Rs 3800 crores annually. We have organized 6 international conferences so far. Besides, PMFAI has organized almost 6 Trade Delegations to various parts of the world in last 10 years.

Q. How has the new patent regime affected the pesticide industry?

A. The affect of patents are very limited as almost 50% to 60% of pesticides are generic, 25% are off-patent and the remaining are patented products, which doesn't have significant market in India and they are just at introductory stage.

Q. What are the issues and challenges faced by Indian pesticide industry?

A. Most important issue is import of ready made pesticide formulations without registering technicals, which is great danger for the country, environment and end users, who are exposed to varieties of toxicity and Indian soil will be spoiled with unknown residues. Government is allowing import of formulations and there are no legal means with Government to take any action. Industry is also facing problems from the counterfeit producers and fly by night operators which effect the image of the industry. Indian agriculture is largely dependent on monsoon and a year like 2009 with bad monsoon situation could adversely affect the growth of Indian agriculture and subsequently the industry.

Q. What are the Government incentives for development of pesticide industry?

A. Government supports the industry with reduction in various levies/duties from time to time. Continuation of Section 9(4) ("me too registration") by Ministry of Agriculture helped in healthy growth of Indian Pesticide Industry in terms of competitiveness as well as continuous growth in exports of pesticides.

Q. What are the efforts taken by the association to tackle environmental issues arising due to pesticide industry?

A. As per the existing regulations of Central and State Governments, Pesticide Industry requires clearance from the Central and State regulatory authorities before starting production. All products are scrutinised and registered by Central Insecticides Board (CIB), and companies are required to submit various types of data and dossiers to the regulatory authorities and environment clearance authorities (pollution control Board).

Q. What are the growth prospects of the Indian pesticide industry?

A. The prospects for growth of the industry are good. India is self-sufficient in terms of various raw-materials and intermediates and we are rich in natural resources. Our Agrochemical Industry is very strong as also specialty chemicals, which is very supportive to create strong industry. Almost all the raw-material and intermediates are manufactured locally and there is bright future for the industry, subject to CIB's support without favouring multi-nationals for monopoly registration.