Overview of Indian Agriculture Agrochemical Market, Registration and Exports

Anil Kakkar

Vice President

Sumitomo Chemical India Ltd.

Indian Agriculture

• Agriculture, with its allied sectors is the largest livelihood provider in India, especially inrural areas.

• It contributes ~ 17% to the nation’s Gross Domestic Product (GDP).

• Indian agriculture and allied activities have witnessed a green revolution, a whiterevolution, a yellow revolution and a blue revolution.

• India has the largest livestock population of around 512 million.

• Steps have been taken to improve the soil fertility through soil health card scheme.

• Govt. wish to experiment Zero Budget Natural Farming (ZBNF).

• Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched in 2016.

• Government of India is aiming to double farmers income by 2022.

Source: Annual Report 2018-19, Ministry of Agriculture and Farmer Welfare, Govt. of India.

Source: Agricultural Statistics at a Glance 2017, Ministry of Agriculture and Farmer Welfare, Govt. of India.

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India’s position in World Agriculture

• India has 1309 million population - 17.7% of the world, next to China.

• India has worlds 12.7% cattle and 56.4% buffalo as livestock.

• World ranking of leading crops is as under:

Source: Agricultural Statistics at a Glance 2017, Ministry of Agriculture and Farmers’ Welfare, Govt. of India.

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First rank Second rank

Spices Rice

Pulses Wheat

Jute Cotton

Millets Sugarcane

Banana Groundnut

Mango Fruits & Vegetables

Milk Tea

Land use and Monsoon 2019

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• Total geographical area is 328.7 millionhectares.

• 140.1 million hectares is the reported netsown area.

• 198.4 million hectares is gross croppedarea with cropping intensity of 142%.

• The net area sown works out to be 43% ofthe total geographical area.

• The net irrigated area in 68.4 millionhectares.

• With 20 agro climatic regions, all 15 majorclimate exists in India.

• The country possess 46 of the 60 soil typesin the world.

S-W Monsoon:Above LPA by 10%.

- Northwest India -2%- Central India 29%- South Peninsula 16%- East & NE India -12%

Source: IMR, Govt. of India

Source: Agricultural Statistics at a Glance 2017

Major crop seasons

• Rabi: October – March

• Major crops (Million hectares)

• Kharif: April – September

• Major crop (Million hectares)

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Source: Ministry of Agriculture and Framer Welfare, Govt. of India.

Agrochemicals in India

• India is one among largest producer of agrochemicals globally, along with UnitedStates, Japan and China.

• Approximately 50% demand comes from domestic customers and balance isexported.

• The loss to crops due to pests ranges from 15 – 25%.

• Increasing population and decreasing arable land ; demand for food grains isincreasing at faster rate as compared to its production.

• This leads to focused efforts for crop productivity and crop protection.

• Crop protection chemicals can increase productivity by 25% by mitigating the lossdue to different pests.

• Thus crop protection chemicals are important for food and nutritionalrequirements.

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Government Initiatives in Agri.

• The Agriculture Export Policy 2018 aims to increase India’s agricultural exports to US$ 60 billion by 2022.

• Transport and Marketing Assistance (TMA) scheme to provide financial assistance for transport and marketing of agriculture products.

• Cabinet Committee on Economic Affairs (CCEA) approved a Rs 5,500 crore (US$ 820.41 million) assistance package for the sugar industry in India.

• Computerisation of Primary Agricultural Credit Society (PACS)

• AGRI-UDAAN programme to mentor start-ups

• Pradhan Mantri Krishi Sinchai Yojana (PMKSY) aimed at development of irrigation sources

• Plans to triple the capacity of food processing sector in India from the current 10 per cent of agriculture produce and has also committed Rs 6,000 crore (US$ 936.38 billion)

• The Government of India has allowed 100 per cent FDI in marketing of food products and in food product e-commerce under the automatic route.

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Agrochemical Industry

• Lead role of agrochemicals industry to fulfill farmers need of Crop protection

• Educating farmers on judicious use of agrochemicals.

• Application of agrochemicals at various growth stages of the crop.

• Concept promotion – IPM & ICM

• Mechanisation of farm operations.

• Safety handling of agrochemicals.

• Contributing to doubling the farmers’ income

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Crop protection market performance

Over the last 5 years, Crop Protection industry has grown at a CAGR of 5.3% with market growing from INR 177.1 billion in 2018 from INR 143.8 billion in 2014.

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(In INR Mn)

Industry scenario

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Segment 2017 volume (INR Mn)

2018 Value (INR Mn)

YOY Growth %

Insecticides 78,543 82,731 5.3%

Fungicides 42,082 44,637 6.1%

Herbicides 35,831 38,914 8.6%

PGR 8,132 8,905 9.5%

Seed Treatment 1,798 1,907 6.1%

Total 166,385 177,094 6.4%

India’s competence in yields

Urbanization, Lower crop yields, Monsoon dependence, Low consumption of pesticides

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Yields of major crops, 2017 (tons/Ha.)

Consumption of pesticides

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Source: Tata Strategic Estimate

Per capita consumption of pesticides (Kg/ha), 2016

Indian Govt. announcements

Reduce use ofFertilizers and

Pesticides Make in India –

Boost Export

Doubling farmer income

by 2022

New investments in manufacturing

plants – 15 %

Reduction in corporate tax

Pesticides under

Price control

Government declarations

Registration

• Ministry of Agriculture regulates the manufacture, sale, import, export and use of pesticides through the 'Insecticides Act, 1968’.

• Central Insecticide Board (CIB) is the central body for Pesticide registration.

- Types of registration: 9(3) & 9(4)- Registration of Chemical Pesticides U/S 9(3)- Technical Indigenous Manufacture U/S 9(4)- Registration for Import of formulation U/S 9(3) without registering technical- Registration for Indigenous manufacture of formulation U/S 9(3) without

registering technical.- Registration for Chemical Plant Growth Regulator (PGR)

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Registration 2/2

• If the product is new or has to be launched for the first time in India, registration has to be under Section 9(3) of the Act.

• For the new product, data on various parameters like bio-efficacy, toxicology, chemistry and packaging is generated and submitted to the CIB.

• If a product is already registered under Section 9(3), anyone can directly apply for registration under Section 9(4)

• Every company has to register individual technical / formulations in India

• After product registration organization has to apply for Manufacturing license endorsement

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Indigenous manufacturer

• As per CIB, 292 pesticides are registered in India U/S 9(3)

• Import:- TI : Technical Import- FI: Formulation Import - FI*: FI without registering technical

• Indigenous Manufacture :- FIM: Formulation Indigenous Manufacture- FIM*: FIM without registering technical- TIM: Technical Indigenous Manufacture

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Steps in product registration

1. Schedule inclusion (if not included in schedule)

2. Sample Import permit ( if imported )

3. Data generation Under Indian Condition –Laboratory & Field (chemistry, bio-efficacy,residue, toxicity & packaging)

4. Submission of Application for Registration: Data checking, compilation of dossier &submission to Registration Authority.

5. Scrutiny of dossier by registration authority –deficiency fulfillment

6. Registration under section 9(3B) of the act – PROVISIONAL

7. Registration under section 9(3) of the act – PERMANENT

8. Registration under section 9(4) of the act – ME-TOO

9. Legal formalities (at state level)

10.Launch.

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Type of sales

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B2B:

‾ Technical supply (Domestic, International)

‾ Bulk/ Formulation supply (Domestic, International)

‾ Brand supply

‾ Job work

‾ Co-marketing

B2C:

‾ Brand sale (Distributor)

‾ Government supply (e.g. Agriculture Department)

‾ Private agencies (e.g. Pest Control Organizations)

‾ Retail Business (e.g. Unimart)

‾ Online sale

‾ Co-distribution

Distribution system

Technical grade manufacturer

RetailerEnd UserRetailer

Distributor

C & F

In house Formulation

C & F

Distributor

Preferred Dealer

Formulator

Product life cycle

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Product R&D

Registration / Approval

Manufacturing License Endorsement

State wise Sales Permission

Product Launch / Branding

Product Growth

Product Maturity

Sales permission

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• Sales permission for each product has to be taken separately for each state

• Selling permission Rules and Regulations varies from state to state

• e.g. Maharashtra Government wont allow co marketing products

Emerging Opportunities

• Fall Armyworm (FAW) is an emerging pest in Maize.

• Fall Armyworm infestation reported on other crops also.

• A major attack of Locust reported from Rajasthan and Gujarat.

• Window of Thrips re-emergence has squeezed on crops like Cotton, Chilli

• White grub in Sugarcane and Groundnut is difficult to control

• BPH paddy is a challenge.

• No solution is available for Oily spots in Pomegranate

• High MRL and low PHI molecules are required

• New warehouses – Post harvest management

Promotional Activities

Conventional Methodology

▪ Leaflet, Poster, Banner

▪ News paper/ Magazine

▪ Vehicle campaign

▪ Demonstrations

▪ Farmer Meeting

▪ Field days

Modern Methodology

▪ Product App

▪ Website / Social Media

▪ Smart Phone Messages

▪ TVC & FM Radio

▪ Digital Vehicle campaign

▪ Video Testimonial

▪ Call Centre

▪ Agri Solution App

New technologies

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Boom sprayer Drone in Agriculture

Introduced by Industry for cost effective applications & tagging products in India market.

Crop spraying, Crop scouting, Crop surveying, Soil mapping, Climate forecast, Crop Insurance

Safety and regulations

• Many organization are working for farmer safety

• Department is also cautious and stringent against label claim

• Department also draw sample randomly from market to cross check ingredients as per RC

• Suggestions from Department, University and Research Centres are taken seriously by

farmers

• Exports rules and guidelines changes from time to time are updated by APEDA and State

Government Statutory Bodies e.g. MRL, PHI, BLQ etc.

• Re entry period studies have started

Notable Agrochemicals Acquisitions and Mergers

• Bayer - Monsanto

• Dow - Dupont

• FMC – Cheminova

• Syngenta - ChemChina

• Sumitomo - Excel Crop Care

• UPL - Acquired Arysta Life Sciences

• PI Industries - Isagro Asia

• Crystal Crop Protection acquired 4 brands

- From FMC Corporation - Furadan, Splendour, Affinity Force and Metcil

- From Syngenta namely - Proclaim, Tilt and Blue Copper.

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Thank you

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