Growing Agro - Chemical Market of India

Growing Agro - Chemical Market of India : A detailed analysis of India's agro-chem market

  

     India is the 4th largest producer of agrochemicals in the world after USA, Japan and China. 

      Ag tech, biologicals, research and  development (R&D) and technical manufacturing are on the rise in India, as the country’s agrochemical market continues to grow in the recent scenerio. A developing opportunity remains in bio-stimulants and bio-pesticides as the Indian government continues promoting sustainable agriculture.

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      The Indian government recognizes its agrochemical industry as one of its top 12 industries to achieve global leadership growing at 8% to 10% through 2025, according to the Federation of Indian Chambers of Commerce and Industry.    

     Another area for opportunity in the domestic market is fertilizer. With the Ukraine-Russian conflict creating a huge deficit in potash for India, which imports 3 million tonnes from Russia and the Ukraine.

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Government Initiatives : 

■ In April 2022, the Government of India officially created regulations for biostimulants, requiring a license to sell and testing products to meet certain standards. 

 ■ With 174 million hectares of agricultural land and a large domestic demand for agricultural products, the Indian government is wanting to double farmers’ income in the next 5 years to increase production.

 ■ In April 2022, India’s Ministry of Agriculture and Farmers’ Welfare issued a 2 year approval for drone-based spraying for most registered pesticides to address destruction from locusts.

    

      To meet these goals, the government is promoting new technologies in crop inputs and ag tech to improve harvests. By 2025, the Economic Times reported that it is estimated that Indian ag tech companies will receive $30-35 billion in investments, increasing from the $190 million of 2021. From investors, India ranks 3rd in the world for ag tech funding and start-ups. 

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