Move from selling pesticide to pest-control, says NITI Aayog’s Ramesh Chand

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India’s pesticides industry, which has become world’s second biggest exporter after China, has been cautioned to be vigilant as many western countries are shifting from agrochemicals to biopesticides and even in the domestic market the official focus has been shifting towards soil conservation through natural farming. Still, it has potential to raise its growth from current level of 9 per cent.

Addressing an event organised by Agro Chem Federation of India (ACFI) on Wednesday, NITI Aayog member Ramesh Chand said: “I have seen it (staying away from chemical pesticides) in many countries. The Netherlands hardly sells any agrochemicals. The entire West is going in that direction. I think in the long run this (Indian agrochemical) industry is required to pay attention to this aspect. Perhaps, the industry needs to move from selling pesticide to pest-control and to offer solutions like integrated pest management.”

He appealed the industry to ponder why many Western countries are shifting from agrochemicals to biopesticides. Chand suggested Indian companies to conduct business responsibly complying with issues related to ESG (environment, social, and governance) which is much talked about now.

Chand said India’s agriculture GDP has grown by average four per cent in last decade, ahead of China’s 3-7-3.8 per cent. The agrochemical industry needs to focus on innovation to minimise pollution and also come out with a document on ease of doing business with compliances, he added.

Robust growth

Highlighting the agrochemical industry’s impressive growth between 2017-18 and 2022-23, the NITI Aayog Member said much of this growth rate happened during the Covid-19 pandemic years when the production activities were seriously disrupted.

Chand further said if India can achieve a nine per cent growth rate in the absence of favourable China factor, the Chinese competition is not as hard it was in the past. “As the competition from China is unlikely to remain at the level witnessed in the past, the agrochemical industry may grow at much higher pace, at any rate in the realm of possibility,” he said.

According to industry data, the total turnover of agrochemicals industry in India was about $10 billion (about ₹83,200 crore) in 2022-23 against $6 billion in 2017-18. India’s exports in agrochemicals was $5.5 billion in 2022-23, second highest in the global trade after China with $11.1 billion. USA, which itself the third largest exporter of agrochemicals, is also India’s largest buyer; while Brazil and Japan are other top destinations.