Agrochemicals industry to cross $5 billion by 2017

NEW DELHI: The market size of Indian agro- chemicals industry is expected to more than double to $5 billion by 2017 on rising agri production and increasing awareness among farmers.

"Currently, the market size of the sector is at $2 billion. In the wake of increasing agricultural production and awareness among farmers about the use of insecticides and pesticides, the demand is bound to grow. It will cross $5 billion by 2017," Insecticides India Managing Director Rajesh Aggarwal said.

He said in India, per capita pesticide consumption of less than 500 gm of per hectare is far below the world average of about 3 kg per hectare.

"Because of low level of consummation, the usage is going to increase dramatically. Huge demand is there in the Indian market," he said adding his company is doing awareness programmes across the country with farmers.

"We are planning to organise about 2,000 farmer meetings across the country and aiming at training about one lakh farmers," Aggarwal said.

Companies are increasing their marketing efforts to train farmers about the right use of agrochemicals in terms of quantity to be used. With increased awareness, the use of agrochemicals will also increase, he said.

According to experts, currently, crops lost due to non-use of pesticides is estimated to be around $17 billion every year.

"With increasing focus on scaling up of productivity and preventing crop losses to feed a billion plus population with limited land resources, the reliance of pesticides is only going to rise," he added.

India is the fourth-largest producer of agrochemicals in the world after the United States, Japan, and China.

Globally, North America, European Union and Asia Pacific consume over 75 per cent of the world's agrochemicals.

Insecticides India Ltd is a leading agro-chemical and plans to invest Rs 125 crore in the next two years to expand production capacity.

Commenting on the company's growth plans, Aggarwal said: "We are targeting a turnover of Rs 850 crore by 2012-13. In 2010-11, the company's turnover was Rs 575 crore."

Shares of the company were trading at Rs 399.95, up 0.96 per cent from the previous close in late afternoon trade on the BSE.