Pesticides/Agro Chemicals

Pesticides industry is one of the major facilitator of the Agricultural sector. Pesticides are one of the important agricultural inputs required to protect crops from the ravages of pests and diseases. It is estimated that around 10-30% of the crop is damaged due to pests including insect pests, diseases, rodents and weeds at various stages of cultivation a... more »

Pesticides industry is one of the major facilitator of the Agricultural sector. Pesticides are one of the important agricultural inputs required to protect crops from the ravages of pests and diseases. It is estimated that around 10-30% of the crop is damaged due to pests including insect pests, diseases, rodents and weeds at various stages of cultivation and distribution. In value term crop worth Rs 100,000 crore is destroyed due to inadequate and improper usage of pesticides. India's per hectare consumption of pesticides is one of the lowest in the world with consumption very much biased towards insecticides. Hence it is imperative that the government pays heed to the industry in addressing their problems. The pesticides industry has played a pivotal role in increasing the agricultural production by improving the productivity of Indian farmers. Use of pesticides not only reduces crop loss but also provides an indirect insurance cover to the farmer by protecting his investment in seeds, fertilizers, irrigation and labor from ravages of insects, pests and weeds. It is pertinent to note that there is no excise duty on seeds and fertilizers but pesticides attract 8% excise Duty. For the benefit of farmers and to improve their living standards, the industry wants rationalization in this front. The industry also faces volatile input prices thus impacting the margins significantly. The increased popularity of genetically modified seeds has been hitting hard the demand for pesticides. But oflate, even these GM crops require different range of pesticides, which comes as an opportunity for the domestic players. Also, as low cost producers of generics, India stands to gain by supplying ingredients and intermediates to the global players. hide «