India Agrochemicals Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

India Agrochemicals Market Insights

The agrochemicals market in India is driven by the rising population within the country, which has led to maintaining sufficiency in agricultural practices, further boosting the use of Indian agrochemical products for farming activities. Moreover, as the demand for food products is increasing, the landmass available for agriculture is gradually decreasing due to the heightened effect of urbanisation, which is providing an impetus for the farmers to use different agrochemicals to increase land productivity and maintain soil health. The India agrochemicals market value is also positively influenced by the Indianisation of the agrochemical industry, which has fuelled the sales of agrochemical products.

According to the Agricultural and Processed Food Products Export Development Authority (APEDA), Ministry of Commerce & Industries, Government of India, India produced approximately 2.9 million metric tons (MT) of certified organic products in 2022–2023, including all types of food products such as oil seeds, fiber, sugar cane, cereals & millets, cotton, pulses, aromatic & medicinal plants, tea, coffee, fruits, spices, dry fruits, vegetables, processed foods, etc.

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India Agrochemicals Market Trends

The Indian government's support for the agrochemical industry is evident through initiatives like the Production Linked Incentive (PLI) scheme for the agrochemical sector. Companies like Rallis India and Insecticides India have benefited from such policies, which incentivise domestic manufacturing and promote self-reliance in agrochemical production.

Additionally, government initiatives focusing on agriculture, such as doubling farmer income by 2022, significant public spending on rural infrastructure, crop insurance coverage, and agricultural credit, are boosting domestic consumption. The rise in disposable income of farmers through schemes like PM-KISAN is increasing the demand of India agrochemicals market.

Market News

May 2022

UPL India and Koppert India partnered to promote sustainable agriculture in India by signing an agreement in Mumbai. UPL offers Koppert's biofertiliser, Copio, through its new business unit NPP to Indian growers, aiming to enhance soil health, plant growth, and overall output.

March 2022

UPL's new product ‘ProNutiva package’ helped farmers in Gujarat increase groundnut crop yields by 35%. The program, which started in 2021, covered over 12,000 acres and 4,000 farmers initially. It has since expanded to benefit over 75,000 farmers across 2.5 lakh acres over three years, potentially reducing India's dependence on edible oil imports, and supporting the India agrochemicals market.

India Agrochemicals Market Growth Drivers

Shift towards bio-based agrochemicals

As per the India agrochemicals market dynamics and trends, the increasing adoption of bio-based products, such as biopesticides made with neem is propelling the market growth. This shift is driven by a growing awareness of environmental sustainability and the need to reduce chemical residues in agricultural produce. The Indian government has been increasingly promoting organic farming and the use of bio-based agrochemicals. Farmers are encouraged to switch to organic and bio-based inputs by a number of programs, such as the Paramparagat Krishi Vikas Yojana (PKVY) and Mission Organic Value Chain Development for North Eastern Region (MOVCDNER). These initiatives try to inform farmers about the advantages of sustainable farming methods in addition to offering financial incentives. Since the pandemic, the organic food business in India has grown exponentially. India is the fifth-largest organic food producer in the world, with 2.6 million hectares under cultivation, according to a 2022 survey of 187 countries that practice organic agriculture by the International Federation of Organic Agriculture Movements (IFOAM) and Research Institute of Organic Agriculture (FiBL). The survey also showed that India has grown its cultivated organic agricultural land by 145.1% over the past ten years, with 1.5% of the country's total agricultural area being used for organic farming. India has the biggest number of organic farmers in the world, at 4.43 million, according to the Economic Survey 2022–2023.

Rise in agrochemical exports

The country's agrochemical exports have been steadily increasing, which not only boosts the Indian economy but also positions the country as a key supplier of agrochemical products worldwide. In particular, Latin America, Africa, and the Asia-Pacific region have seen an increase in the global footprint of Indian agrochemical enterprises. As per the India agrochemicals market analysis, one major Indian agrochemical company that is contributing to the increase of exports is UPL Limited, which has distribution networks spanning more than 130 countries. India is a global leader in the export of agricultural products. The total value of agricultural product exports from April to January of 2024 was USD 38.65 billion. India's agricultural exports were valued at USD 52.50 billion in 2022–2023. The nation's overall agricultural exports in 2021–2022 were USD 50.2 billion, a 20% increase from USD 41.3 billion in 2020–21. India's principal export markets for agrochemicals are Brazil, the United States, Japan, Vietnam, and Indonesia. Brazil, in particular, has emerged as a significant market, with India being one of the top suppliers of crop protection chemicals to support Brazil’s large-scale soybean and corn production.

Government support and policy reforms

The Indian government's support and policy reforms play a crucial role in shaping the India agrochemical market outlook. Initiatives like the Make in India Mission and Atmanirbhar Abhiyan aim to boost domestic manufacturing, reduce import dependency, and promote self-sufficiency in agrochemical production, which will likely the India agrochemicals demand forecast. The manufacturing of agrochemicals in India has increased significantly as a result of the Make in India initiative. To serve both local and international markets, businesses such as UPL Limited, PI Industries, and Rallis India, for instance, have increased the size of their production facilities. India started exporting agrochemicals to more than 100 nations in 2022 after its capacity for producing agrochemicals had grown dramatically. As local production of technical-grade chemicals and raw materials has expanded, India's imports of agrochemicals, particularly from China, have decreased. According to the Ministry of Chemicals and Fertilizers, the Atmanirbhar Bharat program was successful as seen by the 15% decrease in imports in 2022 when compared to 2020 levels.

India Agrochemicals Market Dynamics

Technological advancements and R&D investments

Companies like PI Industries and Dhanuka Agritech Limited are actively investing in research and development to develop innovative agrochemical solutions, precision agriculture technologies, smart formulations, and digital farming tools, aiding the India agrochemicals market growth. This can improve product efficacy and operational efficiency. In January 2021, UPL partnered with TeleSense, a provider of IoT-based grain monitoring solutions, to address post-harvest challenges in the agricultural supply chain. The collaboration aimed to leverage TeleSense's advanced sensors, data analytics, and AI-powered predictive insights to monitor grain quality, storage conditions, and pest infestations in real-time. By integrating TeleSense's technology with UPL's expertise in crop protection and post-harvest management, the partnership sought to optimize storage practices, reduce spoilage, and improve grain quality throughout the storage and transportation phases. According to the Indian Chemical Council, leading companies like UPL and PI Industries are investing over 5-8% of their annual revenue in R&D, with UPL spending approximately INR 1,000 crore annually on innovation. This has led to the development of new eco-friendly products and improved formulations.

India Agrochemicals Market Analysis

Expanding Agricultural Productions Aids the Demand for Agrochemicals

According to data from the USDA Foreign Agricultural Service (FAS) U.S. Department of Agriculture, rice production in India is projected to increase from the five-year average (2019-2023) of 129,093 thousand tons to 138,000 thousand tons by 2024/25, marking a 7% increase, thus aiding the agrochemicals industry in India. This growth can be attributed to improvements in agricultural practices, government support, and favourable weather conditions. Wheat production is also expected to rise, reaching 114,000 thousand tons in 2024/25, a 6% increase from its five-year average of 107,120 thousand tons. Similarly, corn production is projected to see a significant boost, with an 11% increase, rising from 33,946 thousand tons to 37,500 thousand tons. Soybean production is set to grow by 9%, from an average of 11,186 thousand tons to 12,200 thousand tons in 2024/25.

Agrochemicals Industry Outlook in India

Fertilizer production, imports, and sales in India from April to May 2023 exhibit notable trends when compared to the same period in 2022. Urea production increased significantly from 43 lakh tons in 2022 to 50 lakh tons in 2023, representing a 16% growth. Imports of urea also rose by 37%, from 5 lakh tons in 2022 to 7 lakh tons in 2023. This surge in both production and imports contributed to a substantial rise in urea sales, which climbed from 32 lakh tons to 43 lakh tons, marking a 34% increase.

As per India agrochemicals industry analysis, the production of Di-Ammonium Phosphate (DAP) grew from 7 lakh tons in 2022 to 8 lakh tons in 2023, reflecting a 10% rise. DAP imports saw a remarkable increase of 73%, from 6 lakh tons to 10 lakh tons. Consequently, DAP sales surged by 47%, from 9 lakh tons in 2022 to 14 lakh tons in 2023. On the other hand, Muriate of Potash (MOP) showed a different trend. While imports grew significantly by 85%, from 3 lakh tons in 2022 to 6 lakh tons in 2023, sales declined by 43%. NPK Complex fertilizers also experienced a robust increase in production, import, and sales. Production increased by 31%, from 12 lakh tons to 16 lakh tons, imports rose by 56%, from 4 lakh tons to 6 lakh tons, and sales saw a significant increase of 55%, from 7 lakh tons to 10 lakh tons.

Overall, the total production of fertilizers in India increased by 18%, from 62 lakh tons in April to May 2022 to 73 lakh tons in the same period in 2023. Imports rose sharply by 61%, from 18 lakh tons to 29 lakh tons. The total sales of fertilizers saw a significant increase of 37%, from 50 lakh tons in 2022 to 68 lakh tons in 2023. These trends indicate a strong growth trajectory in the fertilizer sector in India, driven by increased domestic production.

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India Agrochemicals Industry Segmentation

The EMR’s report titled “India Agrochemicals Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Pesticide
  • Herbicides
  • Insecticides
  • Fungicides
  • Others
• Fertiliser
  • Nitrogenous
  • Phosphatic
  • Potassic
  • Others

Market Breakup by Nature

• Synthetic

• Bio-based

Market Breakup by Application

• Grains and Cereals
  • Corn 
  • Wheat 
  • Rice 
  • Others 
• Pulses and Oilseeds
  • Soybean 
  • Sunflower 
  • Others
• Fruits and Vegetables
  • Apple 
  • Cucumber 
  • Grapes 
  • Tomato 
  • Others
• Turf and Ornamentals

• Others

Market Breakup by Region

• North Region

• East and Central Region

• West Region

• South Region

India Agrochemicals Market Share

Nitrogenous fertilisers are in high demand because it is required as a macronutrient for efficient crop yield

Fertilisers are used across a wide range of crops, including rice, cereals, grains, and tubers, to meet the growing demand for nutritious food in India. As per India agrochemicals market report, nitrogenous fertilisers are expected to grow at a CAGR of 4.9% between 2024 and 2032 in the fertilisers segment, as nitrogen is a vital macronutrient required for crop growth and development.

On the other hand, pesticides segment includes insecticides, herbicides, and fungicides. Herbicides and fungicides are expected to grow at a CAGR of 4.7% and 4.2% between 2024 and 2032. The increasing use of herbicides is a notable driver for the growth of this segment, as farmers seek to manage weeds more effectively. Additionally, there is a growing demand for insecticides, particularly for the cultivation of staple crops like cereals and grains. 

Potassium-based fertilisers are also seeing increased demand, as they help increase protein content in plants. The low cost and better efficiency of potassium chloride compared to traditional fertilisers are major factors contributing to the growth of the fertilisers segment, thus contributing to the agrochemicals market share in India.

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India Agrochemicals Market Regional Insights

North India Market Trends

The North India region, including states like Uttar Pradesh, Punjab, and Haryana, is a major agricultural hub with a high concentration of crop cultivation, which fuels the demand for pesticides, fertilisers, and other agrochemicals. The government's focus on improving agricultural productivity and infrastructure in this region is expected to further boost the growth of the agrochemicals market in India. Uttar Pradesh, which produces 30% of all wheat in India, is predicted to boost its output this year by 4.7% to 32.25 million tonnes. In the same way, output in Madhya Pradesh, Punjab, and Haryana is expected to increase by 1.8%, 4.1%, and 3.5% from the previous year, respectively.

South India Market Opportunities

The South India region, including states like Andhra Pradesh, Telangana, Tamil Nadu, and Karnataka has a strong presence of major agrochemical companies, such as Coromandel International Limited. The average area under horticultural crops of Andhra Pradesh revealed that fruits, plantations, vegetables and spices etc. were, 47 percent, 22 percent, 15 percent and 16 percent respectively. The growing horticulture and floriculture industries in the South India region are driving the India agrochemicals market expansion.

What Factors are Driving the India Agrochemicals Market Growth?

• India has a large agricultural sector that is heavily reliant on agrochemicals to enhance crop yields and protect against pests and diseases.
• The diverse climatic conditions and variety of crops grown in India create a sustained demand for different types of agrochemicals.
• India has a robust manufacturing base for agrochemicals, supported by a well-established chemical industry.
• The country is a significant exporter of agrochemicals.
• Policies and subsidies from the government aimed at promoting agricultural productivity boost the India agrochemicals demand growth.

What Challenges are Impacting the India Agrochemicals Market?

• The extensive use of agrochemicals has led to concerns about soil degradation, water pollution, and adverse effects on biodiversity.
• There are rising health concerns among consumers and farmers regarding the exposure to and consumption of chemical residues in food products.
• A significant portion of raw materials required for agrochemical production is imported, leading to vulnerabilities in supply chain and cost fluctuations.
• Strict regulations and compliance requirements can be cumbersome and costly for manufacturers, potentially decreasing the India agrochemicals market.
• Unpredictable weather patterns and climate change can affect agricultural productivity and, consequently, the demand for agrochemicals.

What are the Opportunities in the India Agrochemicals Market?

• Innovations in agrochemical formulations and delivery methods, such as slow-release fertilisers and biodegradable pesticides, can create new market opportunities.
• Increasing demand for organic and bio-based agrochemicals provides an opportunity for diversification and meeting consumer preferences for sustainable agriculture.
• The adoption of precision agriculture techniques can optimize the use of agrochemicals, improving efficiency and reducing environmental impact, creating several India agrochemicals market opportunities.
• Tapping into emerging markets in Asia, Africa, and Latin America can offer new growth avenues for Indian agrochemical companies.
• Continued government initiatives aimed at improving agricultural productivity and sustainability can drive demand for advanced agrochemicals.

Competitive Factors in the India Agrochemicals Market

• Companies that effectively navigate regulatory hurdles can gain a competitive edge by bringing new products to market faster.
• Companies that invest in research and development to create advanced, more effective, and safer formulations can capture a larger market share and increase the India agrochemicals market revenue. 
• The effectiveness of agrochemical products in improving crop yields and protecting against pests and diseases is a critical competitive factor. 
• Ensuring consistent quality and reliability of products builds trust among consumers and strengthens brand reputation.
• A broad and efficient distribution network is essential for reaching farmers across India, especially in remote and rural areas. 
• Companies that achieve cost efficiency in manufacturing can offer competitive pricing, making their products more attractive to price-sensitive farmers.
• Implementing sustainable practices in manufacturing processes, such as reducing emissions and waste, can enhance a company's reputation.

Key Industry Players

Market players are focused on developing new molecules, manufacturing processes, and green chemistry products through increased R&D efforts

Sumitomo Chemical Co., Ltd. is a Japanese multinational chemical company founded in 1913. Its headquarters are in Tokyo, Japan. The company provides a diverse range of products including agrochemicals, petrochemicals, pharmaceuticals, and speciality chemicals. 

Dhanuka Agritech Limited is an Indian agrochemicals company founded in 1985. Its headquarters are based in Gurgaon, India. The company manufactures a wide range of pesticides, insecticides, herbicides, and other crop protection products for crops such as rice, cotton, and vegetables to support the growth of the agrochemicals industry in India.

Meghmani Organics Ltd. was founded in 1989 and its headquarters are in Ahmedabad, India. It is a leading manufacturer of pesticides, insecticides, and other crop protection chemicals in India. The company's products are designed for use on crops such as sugarcane and cotton.

Other India agrochemicals market key players include Corteva Agriscience AG, Tata Chemicals Ltd., UPL Limited, Bayer AG, Syngenta Crop Protection AG, BASF SE, and PI Industries Limited, among others.

Key Players in the India Agrochemicals Market and Their Strategic Initiatives

UPL Limited

• UPL invests heavily in research and development to create innovative agrochemical products.
• UPL has launched the “OpenAg” initiative to promote sustainable agricultural practices.

Syngenta India Limited

• The focus on digital agriculture solutions to help farmers optimize the use of agrochemicals is a key trend of India agrochemicals market. 
• Syngenta invests in research and development to innovate new products and improve existing formulations, emphasizing safety and effectiveness.
• The company promotes sustainable agricultural practices through initiatives like “The Good Growth Plan”.

Rallis India Limited

• Rallis India is expanding its product portfolio to include new and innovative agrochemical solutions, focusing on both chemical and biological products.
• Rallis India is investing in the expansion and modernization of its manufacturing facilities to enhance production efficiency and meet the growing agrochemicals demand.

Dhanuka Agritech Limited

• Dhanuka is continuously expanding its product portfolio to include new and innovative agrochemical solutions.
• The company runs various farmer education programs to promote the proper use of agrochemicals and improve agricultural practices.

Innovative Startups in India Agrochemicals Market

Various startups are playing a crucial role in revolutionizing the India agrochemicals market by introducing advanced technology solutions such as precision farming, AI-based quality control, and IoT-driven crop monitoring. They are contributing to reducing the overuse of agrochemicals while ensuring sustainable agriculture, helping farmers achieve better yields with fewer chemical inputs.

Fasal

Founded in 2018 and located in Bengaluru, Fasal is an agri-tech startup that provides AI-powered, IoT-based precision farming solutions. The startup uses climate-based data to help farmers make informed decisions regarding the application of agrochemicals, water, and other inputs. Fasal's technology ensures that agrochemicals are used only when necessary, reducing over-application and optimizing resource usage. In 2022, Fasal raised significant funding to expand its operations across India. The company is now working with farmers to reduce agrochemical usage by providing real-time data about crop health, weather patterns, and pest threats.

Arya Collateral

Founded in 2013 and located in New Delhi, Arya is a post-harvest agritech company that provides warehousing, storage, and financial solutions to farmers and agri-businesses. Arya helps farmers reduce losses due to pests and diseases by providing storage solutions that minimize the need for chemical inputs. Their services help in optimizing agrochemical usage in post-harvest management. Arya recently raised funding to scale up its operations and digital platform, providing farmers with better post-harvest storage solutions and minimizing the need for chemical preservatives.

Recent Developments

May 2024

IFFCO, a leading fertiliser cooperative in India, has partnered with Drone Destination to provide drone spraying services across over 30 lakh acres of farmland in 12 states. This initiative aims to enhance crop productivity and reduce labour costs, while also promoting sustainable farming practices.

April 2024

Coromandel International has initiated the establishment of a Phosphoric Acid-Sulphuric Acid complex facility in Andhra Pradesh, with an investment of Rs 1,000 crore. This project, expected to be operational in two years, will significantly enhance the company's self-sufficiency in fertiliser manufacturing and increase the India agrochemicals industry revenue.

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India Agrochemicals Market Report Snapshots

India Agrochemicals Market Size

India Agrochemicals Market Growth

India Agrochemicals Market Trends

India Agrochemicals Market Share

India Agrochemicals Manufacturers

India Agrochemicals Market Regional Analysis