EXHIBIT: 3 - INFLIBNETshodhganga.inflibnet.ac.in/bitstream/10603/37231/5/chapter3.pdf · The...

CHAPTER III

PESTICIDES PRODUCTION AND MARKETING IN INDIA

3.1 Introduction

The word pest comes from the Latin word "pestis" which includes an

animal or plant that occurs in such abundance as to present a distinct threat,

economically or medically to man or his interest. A pest may be insect, fungus,

weed, rodent, bacteria, virus, nematodes, acarid / mite, parasite and even

animal or bird. Worldwide, about 10,000 species of insects are important as

pest, out of 7, 50,000 identified species. Over 50,000 species of fungi are

responsible for some 1,500 plant diseases; Over 1,800 species of weeds out of

the known 30,000 cause serious economic loss. About 15,000 species of

nematodes produce more than 1,500 serious deleterious effects on plants. Over

1,00,000 species of pests destroy food which could be fed for 135 million

people. The word pest has no biological meaning. Pests are organisms that

diminish the value of resources. In India, crops are affected by over 200 major

pests, 100 plant diseases, hundreds of weeds and other pests like nematodes,

harmful birds, rodents and the like. About 4,800 million rats cause havoc in

India. Approximately, 30 per cent of Indian crop yield potential is being lost

due to insects, disease and weeds which in terms of quantity would mean 110.1

million tonnes of food grain. The value of total loss has been placed at

Rs 90,000 crore, represents about 18 per cent of the gross national agriculture

production. The pest wise losses are as follows:

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EXHIBIT: 3.1 PEST WISE LOSSES

Besides the agriculture, the non - agriculture pests are carriers of

malaria, filaria, encephalitis, typhus, plague and other dreadful diseases. About

30 household pests are worthy of attention, like files, fleas, bedbugs, lice,

cockroaches, mites, termites and moths. Man's war against pests is perennial

and almost eternal. No agriculture or forest crop can be grown in an insect and

disease - free environment. Pests and disease are parts of natural processes that

are going on since the beginning of the universe, and the biological process of

evolution. Total extermination of pests is not possible and is no longer the aim

of pesticide application. The control of pests is the objective and designated as

plant protection. The efficient producer wants to keep loss due to pests to a

minimum. Pest control is now the chemistry of human survival. While pest

control is one of the imperative prerequisites, it bears also higher degree of

negative impacts on environment. Hence, the chemicals which control the pest

commonly known as pesticides. Pesticides are basically toxics and persistence;

they can enter in food chain and cause are injury to human health. They also

destroy the diversity and food web and cause ecological imbalance. Pest


control, therefore, needs regulation on the interest of human health and

environment.

Food and Agriculture Organization (FAO) has defined the term of

pesticide as: any substance or mixture of substances intended for preventing,

destroying or controlling any pest, including vectors of human or animal

disease, unwanted species of plants or animals causing harm during or

otherwise interfering with the production, processing, storage, transport or

marketing of food, agricultural commodities, wood and wood products or

animal feedstuffs, or other pests in or on their bodies. The term includes

substances intended for use as a plant growth regulator, defoliant, desiccant or

agent for thinning fruit or preventing the premature fall of fruit. Also used as

substances applied to crops either before or after harvest to protect the

commodity from deterioration during storage and transport.

3.2 Pesticide Use

Pesticides are defined as the substance or mixture of substances used to

prevent, destroy, repel, attract, sterilise, stupefy or mitigate any insects.

Generally, pesticides are used in three sectors viz. agriculture, public health and

consumer use. The consumption of pesticide in India is about 600 gms. /

hectare, whereas that of developed countries is touching 3000 gms. / hectare.

There is a wide range of pesticides found used in non-agriculture situations

such as industries, public health and for a number of purposes in the home.

Domestic use of pesticides is mainly as fly killer, ant killer, moth killer,

repellants, rodenticides and fungicides etc. By and large, industrial use of

pesticide is of vital importance in the industries such as wood and carpet, wood

preservation, paint industry, paper and board industry, leather industry,

building industry, miscellaneous industrial application e.g. soluble cutting oils,

industrial water systems, drilling fluids etc.


3.3 Characteristics of Pesticide Industry

The characteristics of India pesticides industry in India is summarized

as:

i. Fragmented Structure

As there was no product patent in this industry till 2005, many

formulators entered the market and rendered a fragmented structure to the

pesticide industry. The major players in the Indian market are United

Phosphorous Ltd, Bayer Crop Science Ltd, Rallis India Ltd, Syngenta India,

Gharda Chemicals and the top ten players have an 85 per cent market share.

Bayer Crop science Ltd and Syngenta India Ltd are the market leaders in

domestic sales while United Phosphorous Ltd is the largest exporter of

pesticides.

ii. Low Capacity Utilization

Given the uneven food grain production which is highly dependent on

irregular rainfall and increased competition in the export market, the

production trend of the pesticide industry is quite irregular. Due to seasonality

of demand the manufacturers face low capacity utilization because of which

they have not been able to take advantage of the economies of scale. During

FY08, the domestic capacity was 146,000 MT whereas production was only

83,000MT.

iii. Working Capital intensive

The pesticide industry is working capital-intensive as the seasonal nature

of demand for pesticides forces companies to maintain large inventory levels.

Moreover, the farmers require long credit periods as farmers have little surplus

money left for purchasing pesticides, as pesticides are the last input in

agriculture operation.


iv. R & D Requirement During the process patent regime that existed before 2005, the Indian

companies concentrated on marketing generic and off-patent products;

evidently the R&D investment in the pesticide industry was quite low in India

during this time as compared to the global market. Consequently, about 70 per

cent of all pesticides used in India are generics. Eventhough the lack of patents

deprived the Indian agriculture sector from the benefits of newer and more

effective pesticides, India developed competencies in the generics market and

is now a net exporter of pesticides.

v. Low Brand Awareness and Price-Sensitive Products The market for pesticides is highly price-sensitive and less brand

conscious as it largely caters to farmers. However, farmers need to be educated

and made aware of the usage and quality of pesticides. Moreover, due to the

prevalence of spurious pesticides in the market, brand awareness becomes

critical for the Indian manufacturers.

3.4 Advantages of Using Pesticides

Pests are an ecological problem and therefore our control strategies must be

ecologically sound. Basically, there are two approaches to pest control:

a. Prevention

b. Cure or removal of the cause.

Modern agriculture is a combination of both and human intervention is

necessary, whether it be pulling out weeds by hand, use of pesticides or genetic

engineering. Control methods evolve over time as knowledge and techniques

improve. This includes the development of chemical means of control which

become very important because of a number of advantages. For example:

Cost Effectiveness. Farm chemicals are an economical way of

controlling pests. They require low labour input and allow large areas to


be reacted quickly and efficiently. It has been conservatively estimated

that for every dollar a farmer spends on farm chemicals, he receives $4

return (Anon, 1990a). Production per labour unit has increased while

production costs and energy inputs are lower.

Timeliness and Flexibility. A suitable farm chemical is available for

most pest problems with variations in activity, selectivity and

persistence. The best product can be chosen for the situation. This

allows more flexibility in management options and better timeliness of

pest control.

Quality, Quantity and Price of Produce. Farm chemicals ensure a

plentiful supply and variety of high quality, wholesome food at a

reasonable price. Modern society demands nutritious food free from

harmful organisms and blemishes. Ornamental horticulture also requires

unblemished and pest-free plants and flowers. This would be very

difficult without farm chemicals.

Prevention of Problems. Farm chemicals are frequently used to prevent

pest problems from occurring, e.g. preventing weeds in gardens and

lawns; treatment of export and import produce to prevent the spread of

pests; treatment of stored products to prevent pest attack and destruction

during storage.

Protection of Pets and Humans. Without farm chemicals, the treatment

of spiders, cockroaches, etc in houses; fleas on pets, etc, would be most

difficult.

Protection of the Environment. If no farm chemicals were available to

control environmental pests like noxious weeds, feral animals, etc, our

environment would suffer very badly. Using herbicides to control crop

weeds reduces the need for cultivation, thus, reducing land degradation.


Farm chemicals are a management tool to aid in the control of pests and

their continued use is supported by the conclusions of the Senate Select

Committee on Agricultural and Veterinary Chemicals in Australia, and even

Dr. Kate Short of the Total Environment Centre states: "One who do not have a

problem with pesticides being used as a management tool in pest control in

Australian agriculture" (Colston et al., 1990).

3.5 Potential Adverse Effects of Pesticides

Despite their many advantages, there are some potential hazards or risks

when using farm chemicals. These risks may be associated with all chemicals

whether they be industrial chemicals, pesticides, household products or even

natural chemicals found in the environment. Undesirable side effects of farm

chemical use usually stem from a lack of understanding of the impact of the

chemical on the environment, compounded by indiscriminate and overuse of

the product. These side effects do not always occur when farm chemicals are

used and damage does not necessarily result. Some of these effects may be:

1. Reduction of Beneficial Species. Non-target organisms, including

predators and parasites of pests, can also be affected by chemical

application. The reduction of these beneficial organisms can result in

changes in the natural biological balances. Losses of honeybees and

other pollinating insects can also be a problem.

2. Drift of Sprays and Vapour during application can cause severe

damage and residue problems in crops, livestock, waterways and the

general environment. Care in the methods of application and the weather

conditions under which it is carried out can reduce drift. Environmental

pollution from careless application and runoff can result in wildlife and

fish losses. This should be a concern for all of us.

3. Residues in Food for humans and feed for livestock can be a

consequence of direct application of a chemical to the food source, by


the presence of pollutants in the environment or by transfer and bio-

magnification of the chemical along a food chain. Not all residues are

undesirable although good agricultural practice must be observed to

prevent unnecessary and excessive levels of residues.

4. Ground Water Contamination by leached chemicals can occur in high

use areas if persistent products are used.

5. Resistance to the pesticide used can develop in target pests due to

overuse and incorrect use of the chemical.

6. Poisoning Hazards and other health effects to operators can occur

through excessive exposure if safe handling procedures are not followed

and protective clothing not worn. Poisoning risks depend on dose,

toxicity, duration of exposure and sensitivity.

7. Other Possible Health Effects due to indiscriminate use of farm

chemicals also concern many people in the community.

Problems result from misuse, abuse and overuse. Farm chemicals can be

used safely and effectively without these undesirable effects although there is

always a risk associated with any activity. This risk is relative, as evidenced by

smoking or driving a car or a tractor. For example, in May this year, 166

Australians died in motor vehicle accidents while there are very few poisonings

from farm chemicals. Many commonly used substances like aspirin or common

salt are more toxic than many pesticides. Despite the relative risks being low,

all users of farm chemicals, whether on a large scale or in the home, have a

responsibility to use them carefully, properly and judiciously.


3.6 Type of pesticides

A. Pesticides can be broadly classified into six categories:

Insecticides: used against insects

Fungicides: used for preventing fungus

Herbicides: used for removing weeds

Rodenticides: used against rodents

Nemanticides: used for killing pests in the plant root

Regulants: used for nourishing plants

EXHIBIT: 3.2

B. TYPES OF PESTICIDE FORMULATION BASIS

Solid

Dust (D or DU)

Granules (G or GR)

Soluble powder (SP)

Wettable powder (WP or W)

Liquid

Aerosol (A)

Emulsifiable concentrate (EC or E)

Solution (SN)

Fumigants

Gases


Pesticides can be manufactured and sold mainly in two forms- Technical

and Formulations. Technicals are the first stage of manufacture where the

chemical is concentrated and unsuitable for direct use. This is then processed

with other materials to create formulations. The conversion from technical

grade to formulations adds substantial value to the product. Pest control is thus

an urgent necessity. The current demand for technical grade pesticides stands at

about 85,000 tonnes per annum and has been growing at 5-10 per cent

annually.

Processed foods and agricultural product exports are being given a thrust

in India. For this purpose, quality and quantity have to be taken care of. In

order to increase production and improve the quality of agricultural products,

the country’s dependence on better quality seeds and irrigation will have to

increase. This, in, turn rises the demand for pesticides.

Annual loss of agricultural produce by pests and pathogens alone is

30 per cent. So, use of pesticides has increased the yield from high yielding

varieties of plants which are more easy victims of pests and parasites than their

wild relatives. Flit, baygon and mosquito coils are pesticides. DDT

(insecticide), 2-4-D (weedicide) are two synthetic pesticides introduced after

world war -2. Bordeaux mixture is a fungicide used from a century ago. This

mixture of copper sulphate and calcium hydroxide was discovered in Bordeaux

University in France as an effective killer of fungus Plasmopara viticola,

causing deadly downy mildew in vine.

C. The pesticides used in India can be classified into five on the basis of

chemical nature.

1. Organ chlorides: - These are organic compounds with several atoms of

chlorine per molecule. ALDRIN, DIELDRIN and ENDRIN are organo

chlorine pesticides. Aldrin is used in the foundation of buildings to prevent


attack by termites. All these chemicals are lipophillc and get bioaccumulated in

the fatty tissue of animals.

2.Organophosphates:- MALATHIION (Flit) used in antimalarial programmes

and PARATHION are esters of organic compounds with phosphoric acid.

Fenitrethion, malathion and parathion are very effective on the nervous system.

3. Carbamates:- These are compounds having a chemical structure similar to

acetylecholine. Carbofuran (furadon), propoxur (baygon) are carbamate

pesticides.

4. Pyrethroids:- These are synthetic products from pyrethin, a plant chemical

extracted from chrysanthemum cinerarifolium.

5. Triazines:- These are compound like simazine, altrazine derived from urea.

They are effective weedicides (herbicides) used against the weeds of tea,

tobacco and cotton.

D. Grouped Pesticides Based on Application Features

Pesticides can also be classified according to how or when they work.

Some groups that describe how or when pesticides work are:

Contact pesticides generally control a pest as a result of direct contact.

Insects are killed when sprayed directly or when they crawl across

surfaces treated with a residual contact insecticide. Weed foliage is

killed when enough surface area is covered with a contact herbicide.

Systemic pesticides are pesticides which are absorbed by plants or

animals and move to untreated tissues. Systemic or translocated

herbicides move within the plant to untreated areas of leaves, stems or

roots. They may kill weeds with only partial spray coverage. Systemic


insecticides or fungicides move throughout treated plants and kill certain

insects or fungi. Some systemic insecticides are applied to animals and

move through the animal to control pests such as warble grubs, lice, or

fleas. Some pesticides only move in one direction within the plant,

either up or down. Knowing what direction the pesticide moves will

help guide your decisions. For example some insecticides only move

upwards in plants. If applied to the root zone, it will travel throughout

the plant, but if applied to the leaves it will not move throughout the

plant. Some pesticides are considered locally systemic. These will only

move a short distance in a plant from the point of contact.

Foliar pesticides are applied to plant leaves, stems and branches. Note,

they may be either a contact pesticide or a systemic pesticide.

Soil applied pesticides are applied to the soil. Some are taken up by

roots and translocated inside the plant. Other soil applied herbicides kill

weed seedlings by contact with young shoots or leaves as they break

through the soil.

Fumigants are chemicals that are applied as toxic gas or as a soild or

liquid which forms a toxic gas. The gas will penetrate cracks and

crevices of structures or soil or the spaces between products stored in

containers.

Preplant herbicides are applied to the soil before seeding or

transplanting.

Pre-emergent herbicides are applied to the soil after planting but before

emergence of the crop or weed. The pesticide label should indicate if a

pesticide is pre-emergent to the crop or weed.

Post emergent herbicides are applied after the crop or weed has

emerged.


Tranlocated herbicides enter the roots or above ground parts of plants

and move within the plants. They are also called systemic herbicides.

Eradicant fungicides destroy fungi that have already invaded plants and

begun to damage plant tissues. They inhibit metabolic processes of

growing fungal organisms.

Protectant fungicides prevent fungal infections. They rated fungal

growth or prevent or transmission from entering treated plants. They

must be used before the fungi reach the infection stage. Once plants

infected, the fungicide will normally not kill the fungi inside the plant.

Selective pesticides will only control certain pests.

Non selective pesticides will control a wide range of pests.

Suffocating insecticides clog the breathing system of insects and may

affect eggs.

Residual pesticides do not break down quickly and may control pests for

a long time (i.e., several weeks or a year).

Non residual pesticides are quickly made inactive after application and

do not affect future crops.

3.7 Pesticides Production and Consumption Pattern in India

In order to meet the needs of a growing population agricultural

production and protection, technology has to play a crucial role. An overview

of plant protection chemicals is thus presented here. Crop losses due to pests: It

has been estimated that 18 per cent of the gross national agricultural production

is lost due to insect pests, plant pathogens, weeds, rodents, birds, nematodes

and in storage. Table 3.1 shows the estimated crop losses due to pests in India.


Agricultural chemicals have come to stay as an essential input in

increasing agricultural production by preventing crop losses before and after

harvesting to keep pace with the ever increasing demand for food, feed and

fibre. Production of pesticides: From a meager 2000 MT a year during fifties,

the production of pesticides and allied chemicals in India touched a level of

85030 MT during 1994-95, 85338 MT in 2008-09 (Table 3.2)

TABLE: 3.1 ESTIMATED CROP LOSSES DUE TO PESTS IN INDIA

Crop Mn Mt Value (Rs. Crores) Rice 26.3 9468 Wheat 3.3 1213 Sorghum & Millets 8.9 2670 Pulses 5.6 3752 Seed Cotton 2.7 3105 Mustard 2.9 2407 Sugarcane 56.8 4373 Groundnut 1.4 1260 Maize 3.2 992 Total - 29240 Other crops (fruits, vegetables, spices, medicinal crops etc) - 30000 Losses in storages (due to stored grain insects, fungi and rodents) - 30000 Estimated crop losses - 90000

Source: Dept. of Chemicals and Petrochemicals


TAB

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6344

63

44

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3513

29

37

4471

40

36

4429

44

95

3441

33

05

2556

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11

850

1176

0 8.

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8.80

55

97

4248

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4710

27

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4297

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2000

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4000

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3.7.1 Consumption Pattern

Interestingly, India’s consumption of pesticides per hectare is low when

compared with world averges-0.380 kg/ha against Korea’s 16.56 kg/ha and

Japan’s 10.80 kg/ha (Table 3). According to the pesticide industry statistics,

India spends $3/ha on pesticides compared with $24/ha spend by Philippines,

$255/ha by South Korea and $633/ha by Japan.

TABLE: 3.3

CONSUMPTION PATTERN OF PESTICIDES IN DIFFERENT COUNTRIES

Country or Area Pesticides use (Kg ha’a.i) Republic of Korea 16.56 Italy 13.35 Hungary 12.57 Japan 10.80 China 2.0-2.5 Europe 1.90 USA 1.50 Mexico 1.38 Thailand 1.37 Indonesia 0.58 India 0.38 Turkey 0.30 Argentina 0.29 Latin America 0.22 Oceania 0.20 Africa 0.13

Source: Ministry of Chemicals and Fertilisers, Govt. of India. (11342) & (12486)

i. Pesticides registered: As on 13/11/2009, about 221 pesticides

belonging to different chemical groups are registered for use, but

only 84 pesticides are in use.

ii. Consumption of pesticides: The consumption of pesticides during

2005-06 was 42378 MT. Over the years, the consumption has come

down due to the introduction of low dose pesticides (Table 3.4).


TABLE 3.4 CONSUMPTION OF INDIGENOUS PESTICIDES

S. No Pesticides 2001-02 2002-03 2003-04 2004-05 2005-06 1. Acephate 750 782 440 393 464 2. Cypermethrin 1300 1315 32 641 2154 3. Dichlorvos 1070 1250 818 1295 1849 4. Dimethoate 1500 2009 625 1412 785 5. Endosulphan 3985 2000 2900 1303 3537 6. Ethion 415 410 315 294 143 7. Fenitrothion 415 410 412 421 133 8. Fenthion 60 79 62 108 49 9. Fenvalerate 2100 1192 975 1088 938

10. Lindane 700 615 - 867 661 11. Metal Dehyde 32 40 07 72 11 12. Malathion 2600 2384 3015 3035 1340 13. Methyi parathion 3008 3028 3200 3142 1472 14. Monocrotophos 2815 3205 3115 3500 1465 15. Neem based insecticides 736 632 824 1051 991 16. Oxydemeton methyl 512 382 213 352 166 17. Paradichlora-benzene 0 0 1 168 81 18. Phorate 2215 2316 3010 2155 263 19. Phosalone 218 275 145 130 251 20. Phosphamidon 1100 1020 1480 883 579 21. Pyrethrum 13 10 11 11 34 22. Quinalphos 2181 2318 1650 2106 1301 23. Sevidol 0 0 0 0 0 24. Temephos 0 0 1 0 0 25. Triazophos 114 108 115 105 0 26. Aureofungin 8 5 12 21 20 27. Captafol/Difolaton 419 344 15 142 45 28. Captan 170 256 200 167 65 29. Carbendazim 625 859 400 603 2167 30. Copper oxychloride 1122 1213 1080 1172 1497 31. Copper sulphate 1042 1128 514 491 1118 32. Curprous oxide 5 2 5 125 19 33. Ethyl mercury chloride 0 0 0 0 0 34. Ferbam 25 9 12 11 9 35. Lime sulphur 32 45 20 40 49 36. Mancozeb 2577 2800 2615 2300 3649 37. MEMC 71 81 22 784 680 38. Organo mercurials 0 0 0 0 0 39. Nickel chloride 55 60 0 0 4 40. Paris green 0 0 0 0 0

Table Contd…


CONSUMPTION OF INDIGENOUS PESTICIDES S. No Pesticides 2001-02 2002-03 2003-04 2004-05 2005-06

41. PMA 0 0 0 0 0 42. Streptocycline 39 47 20 18 66 43. Sulphur 2332 3185 3010 490 3224 44. Thiram 419 402 302 180 551 45. Zineb 318 418 205 48 85 46. Ziram 277 385 100 47 128 47. Alachlor 142 150 95 169 50 48. Anilophos 535 716 200 401 243 49. Butachlor 2019 2480 1520 2290 2699 50. Dalapon 72 85 17 30 34 51. 2.4-D 612 680 612 534 565 52. Diuron 12 11 10 18 29 53. Fluchloralin 155 213 115 289 82 54. Glyphosate 180 178 162 826 216 55. Isoproturon 2512 2618 2208 1140 2140 56. Paraquat dischioride 110 156 70 973 148 57. Propanil 0 0 30 0 16 58. TCA 0 0 15 0 0 59. Aluminium phosphide 234 250 142 255 148 60. Barium carbonate 0 0 0 0 0 61. EDCT mixture 0 0 0 0 0 62. EDB 18 23 0 0 7 63. Methyl bromide 4 7 7 0 12 64. Warfarin 6 10 1 0 13 65. MB+FDB 0 0 0 0 0 66. Zinc phosphide 220 359 215 188 798 67. Alpha napthyl acetic acid 18 19 25 34 818 68. Chiormequat chloride 12 4 10 0 21 69. Others 0 0 0 0 0

Total 43800 45130 37352 38278 42378 Source: Ministry of Chemicals and Fertilisers, Govt. of India. (11342) & (12486)

Of the top 20 pesticides sold in India, 16 are insecticides. However, the

global market is dominated by herbicides, which have a 48 per cent share

followed by insecticides and fungicides which account for only 29 per cent and

17 per cent respectively

iii. Overall performance: The overall performance of pesticides ie.,

capacity, production, import, export and consumption in different

years in given in (Table 3.5)


TABLE: 3.5 PERFORMANCE OF PESTICIDES DURING 2003-04 TO 2008-09

(Figure in Thousand MT)

Pesticides (Technical) 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Capacity 134 146 148 145 146 146 Production 85 94 82 85 83 85 Capacity utilization (per cent) 63.4 64.4 55.4 58.6 56.8 58.2

Import 3 3 3 3 1 0 Export 26 27 27 33 25 0 Consumption 62 70 58 55 56 85

Source: Annual report 2009, Deptt. Of Chemicals and Petrochemicals

iv. Crop-wise consumption: The consumption of pesticides largely

depends upon the pest problem in use region or on a specific crop.

Based on the likely incidence of such posts during kharft/ rabt, the

State Governments make an assessment of the requirement.

However, the projected demand and the actual consumption are

strongly governed by the climatic and other conditions.

TABLE: 3.6

CROP-WISE CONSUMPTION OF PESTICIDES IN INDIA

Crop Share of pesticide use (per cent) Cotton 44.5 Paddy 22.8 Jowar 8.9 Fruits and vegetables 7.0 Wheat 6.4 Arhar 2.8 Other 7.6 Total 100.0

Source: Annual report 2009, Deptt. Of Chemicals and Petrochemicals

Cotton, paddy, vegetables and fruits are grown in 32 per cent of the

cultivated area and account for over 80per cent of the pesticide consumption in

the country. While cotton is planted on about 4.5-5 per cent of the total

cultivable area (on about 7.5 million ha). It accounts for about 45 per cent of


pesticide consumption in India, followed by rice (23 per cent), jowar

(9 per cent), vegetables (7 per cent), wheat (6 per cent) and pulses (4 per cent)

(Table 3.6).

v. State-wise consumption: Based on the data on consumption of

pesticides for the year 2001-01, three States viz. Haryana, Punjab

and Uttar Pradesh consumed more than 5000 MT (technical grade)

pesticides annually, Nine States viz., Andhra Pradesh, Maharashtra,

Rajasthan, Orissa and Tamil Nadu consumed pesticides between

1000 and 5000 MT. Three States viz., Assam, Bihar and Himachal

Pradesh consumed pesticides between 100 and 1000 MT. Seven

States viz., Arunachal Pradesh, Jammu & Kashmir, Manipur,

Mizoram, Nagaland, Tripura, Delhi and UT of Pondicherry

consumed pesticides between 10 and 100 MT annually. Three States

viz., Goa, Meghalaya, Sikkim and five UTs viz., Andman & Nicobar

islands Chandigarh, Dadara & Nagar, Haveli, Daman & Dlu and

Lakshadweep consumed less than 10 MT pesticides annually.

(Table 3.7).


In India, Andhra Pradesh (A.P) ,Tamil Nadu, Karnataka and Punjab

account for 50per cent of the total pesticide market. A.P alone consumes 24 per

centof the total pesticides. The herbicides have a good market in Punjab and

Haryana. Insecticides are much in demand in the southern states and

Maharashtra.

vi. Export and Import: India is a net exporter of agrochemicals. The key

export destination markets are USA, UK, France, Netherlands,

Belgium, Spain, South Africa, Bangladesh, Malaysia and Singapore.

Some of the agro-chemicals exported over the years include

cypermethrin, isoproturon, endosulphan and aluminium phosphide.

Exports consist mostly of off-patent products. The value of export

and import during last five years is given in Table 3.8.

TABLE: 3.8 EXPORT AND IMPORT OF PESTICIDES

(Rupees in crores)

Source: Directorate of Plant, Protection, Quarantine & Storage

Pesticide regulation: The Insecticides Act, 1968 and Insecticides Rules.

1971 regulate the import, registration process, manufacture, sale transport,

distribution and use of insecticides (pesticides) with a view to prevent risk to

human beings or animals and for all connected matters, throughout India. All

insecticides (pesticides) have to necessarily undergo the registration process

with the Central Insecticides Board & Registration Committee (CIB & RC)

before they can be made available for use or sale. Thus, technically all

insecticides pesticides in India are those substances that are listed on the

Year Export Import 2001-02 1356.45 362.01 2002-03 1487.51 286.97 2003-04 1745.56 501.06 2004-05 2095.53 712.48 2005-06 2790.69 754.41 2006-07 5717.80 840.50 2007-08 4585.23 695.49


"Schedule" of the Insecticides Act, 1968. The Registration certificate mandates

that a label be put on the packaging, which clearly indicates the nature of the

insecticide (agricultural or household use), composition, active ingredient,

target pest(s), recommended dosage, caution sign and safety precautions.

Therefore, a pesticide labeled for agriculture should not be used in a household.

The CIB & RC scrutinizes and periodically reviews all pesticides and

their usage, some are banned from registration (Table 3.9). Sometimes a

pesticide can be banned even after registration when it causes serious

environmental and public health concerns. Some pesticides are meant for

"Restricted Use" (Table 3.10) which means that they can be used only for

prescribed purposes and by authorized personnel by obtaining the appropriate

Government license.

TABLE 3.9 LIST OF PESTICIDES FOR WHICH REGISTRATION REFUSED

S. No Name of pesticide Pesticides Banned for manufacture, import and use (25 Nos) 1. Calcium Arsonate Aldnn 2. EPM Benzene hexachloride 3. Azinphos Methyl Calcium cyanide 4. Lead Arsonate Chlordane 5. Mevinphos (Phosdrin) Copper acetoarsenite 6. 2,4,5-T Cibromochloropropane 7. Carbophenothion Endrin 8. Vamidothion Ethyl Mercury Chloride 9. Mephosfolan Ethyl Parathion 10. Azinphos ethyl Heptachlor 11. Binapacryl Menazone 12. Dicrotophos Nitrofen 13. Thiodemeton / Disulfoton Paraquat dimethyl sulpha 14. Fentin acetate Pentachloronitrobenzene 15. Fentin hydroxide Pentachlorophenol 16. Chinomethionate (Morestan) Phenyl mercury acetate 17. Ammonium sukphamate Sodium methane arsonate

18. Leptophos (Phosvel)

Tetradifon Toxafen Aldicarb Chlorobenzilate Dieldrine Maleic hydrazide Ethylene dibromide TCA (Trichloro acetic acid)

Source: Directorate of Plant, Protection, Quarantine & Storage


B. Pesticide / Pesticide formulations banned for use but their

manufacture is allowed fir export (2 Nos): Nicotin sulfare and Captafol 80 per

cent Powder

C. Pesticide formulations banned for import, manufacture and use are:

Mehomyl 24 per cent L, Methomyl 12.5 per cent L, Phosphamidon 85 per cent

SL, Carbofuron 50 per cent SP, D. Pesticide withdrawn, Dalapon. Ferbam,

Formothion, Nickel , chloride, Paradichlorobenzene (PDCB), Simazine,

Warfarin and

TABLE: 3.10 PESTICIDES RESTRICTED FOR USE IN INDIA

S. No Name of Pesticides

1. Aluminium Phosphide 2. DDT 3. Lindane 4. Methyl bromide 5. Methyl parathion 6. Sodium cyanide 7. Methoxy ethyl mercury chioride (MEMC) 8. Monocrotophos (banned for use on vegetable) 9. Endosulphan

Source: Directorate of Plant, Protection, Quarantine & Storage Agriculture has had to face the destructive activities of numerous pests

like fungi, weeds and insects from time immemorial, leading to radical

decrease in yields. With the advent of chemical pesticides, this crisis was

resolved to a great extent. But the over dependence on chemical pesticides and

eventual uninhibited use of them has necessitated for alternatives mainly for

environmental concerns. Degraded soils and groundwater pollution has resulted

in nutritionally imbalanced and unproductive lands. Violative pesticide

residues also sometimes raise food safety concerns among domestic consumers

and pose trade impediments for export crops. However, it is has been noticed

that the Indian crop protection market primarily serves the production of

cotton, rice, soybeans, groundnuts, fruits, vegetables, wheat and other cereals.

Although India produces about 16 per cent of the world’s food, it uses just


2 per cent of the world’s pesticides, one of the lowest per-hectare consumption

rates in the world.

TABLE: 3.11 SIGNIFICANCE OF SYMBOLS ON THE PESTICIDES CONTAINER

OR PACKING OR LABEL

Sl. No Toxicity Category Colour of

triangle Signal word

on label Warning symbol

on label

1 Extremely toxic Bright Red Poison Skull and cross bones

2 Highly toxic Bright Yellow Poison -

3 Moderately toxic Bright Blue Danger - 4 Slightly toxic Bright Green Caution -

3.8 Pesticides Marketing Practices

Nothing can be more disheartening for farmers when a large part of their

production is destroyed by insects, weeds and pests. However, it is not wrong

to say that protecting agricultural farms and lands from these unwanted pests is

a tough task. But, with the availability of several kinds of agrochemicals, these

problems can be solved to a significant level. Agrochemicals are those kinds of

substances, which are actively used in managing agricultural ecosystem. These

products, commonly referred as crop protection chemicals play a vital role in

controlling the attacks of pests, weeds, fungi, diseases and other undesirable

pests which pose serious threats to the crop production. Agrochemical products

include wide ranges of pesticides, insecticides, herbicides and fungicides.

These agrochemical products aid in protecting crops from the harmful attacks

of pest, insects, unwanted weeds and fungi respectively. It may also include

synthetic fertilizers, hormones and other chemical growth agents, and

concentrated stores of raw animal manure. It is to be noted that safety of

agrochemical products for consumer and environment is carefully regulated

and only after a comprehensive safety assessment, a particular agrochemical

product is allowed to be sold within a country. Each agrochemical product has

a specific application that is clearly mentioned on its label for clearly stating its


use to the consumers. Education and training programs are also organized to

convey the safe and proper use of the crop protection products. Moreover,

recommended precautions that have to be adopted while using these products

and the effective way of applying the agrochemical products are also taught to

increase productivity and save input costs.

3.8.1 Agrochemical Manufacturer

It is now a well-known fact that India has become a major centre for

chemical and pharmaceutical Industry. Many factors play vital role in

flourishing chemical and pharmaceutical industries in India, but one cannot

ignore Gujarat's contribution to flourish these industries. Ankleshwar based

GIDC is Asia's largest industrial development centre which is also renowned

for utmost chemical zone with modern infrastructure facilities. All kind of

chemical manufacturing companies are there; from small traditional company

to multinational giants have their base in Ankleshwar. All kind of chemical

products are produced. From pharmaceutical product to agrochemical products

everything is produced at same industrial estate.

Today agrochemical products are emerging as necessary products for

agriculture industry. Agrochemical products especially apply to crop protection

from harmful insects and germs. With the growing population, the demand for

food crops is also increasing and for efficiently meeting the demand farmers

have to constantly take the help of crop protecting chemical products. Wide

range of chemical products includes insecticides, herbicides, fungicides,

synthetic fertilizers, and chemical growth agents. Agrochemical products are

boon to the farmers, as with the use of these products farmers can increase the

agricultural productivity that efficiently helps to provide food for the ever

growing population and also contributes toward eradicating poverty. Many

manufacturers are involved in manufacturing of agrochemical products and

offer wide range of products like insecticides, fungicide, herbicides, etc.


3.8.2 Marketing of Pesticides

Agriculture has an impact on the lives of everyone, from farmers to

consumers. Pesticides companies play an important role and responsibilities in

agribusiness. They are committed to sustainable agriculture, through

innovative research and technology.

3.8.3 Marketing strategy

The marketing of agrochemicals is done through “rural marketing”. Here,

the consumer targeted is the farmer the attitudes, lifestyle and consumer

behaviour of the farmers differ from those of the urban consumers. Hence, a

slightly different approach has to be adopted while marketing agrochemicals.

Marketing strategy of pesticides companies is based on the 4 P’s of marketing,

namely, Product, Price, Place (distribution) and Promotion.

a. Product

Indian pesticide manufacturing companies are engaged in constant

endeavor to provide the farmers with the best product. Pesticide manufactures

continuously meet the demand of the farmers by adding new products,

changing existing ones and eliminating others. The ideas for development of

new products or modification in existing products come from the feedback

received from the farmers and also sometimes dealers. Pesticide manufactures

have a huge network of field-workers who practically go into the farms to find

solutions to recurrent as well as new problems related to crop production and

collect feedback. It has to conduct ongoing research & development activities,

as one of the inherent features of agrochemicals is obsolescence due to the

ability of the pests to gain immunity to these products.

b. Price

The products offered by Syngenta are premium end products and hence

are priced slightly higher. But their product range consists of the best that is to

be offered in the market due to their immense R&D activities and emphasis on


technology. The farmers too believe in the quality of their products and price

comes secondary to such quality products.

c. Place (Physical Distribution)

Syngenta makes very little use of middlemen as they strongly believe in

“personal selling”. Their general channel of distribution is:

EXHIBIT: 3.3

CHANNEL OF DISTRIBUTION

They have strict policies when it comes to offering credit to middlemen.

Since the company salespersons are in very close contact with the

farmers, they can offer timely supply of their products.

d. Promotion

Since Syngenta is a newly formed company, it is currently engaging

itself in a lot of marketing activities. As mentioned earlier Syngenta very

strongly believes in personal selling, that is, creating demand at the grassroots

level. Their target audiences are the farmers and also opinion leaders like

village chiefs or teachers (as they are educated). They also target influencers

like the Department of Agriculture to help promote their product.

They use media like “direct mailers” to inform the farmers about their

products and schemes, which, helps in creating a good rapport with the farmers

and schemes, which, helps in creating a good rapport with the farmer and they

distinguish Syngenta from rest of the companies. Press or print media is used

Company Sales Person

Dealer /Retailer

Farmer


very judiciously since many of the farmers are not educated. For print

advertising, popular regional newspapers or trade journals are used. For

television advertising, regional television is used extensively and the most

preferred channel is Doordarshan since the reach of Cable television is

minimal. Programmes like “aamchi maati, aamchi mansa” which are targeted

towards farmers are used advertising. Radio is a very essential media since it

has a wide reach. Audio advertising is also done through vehicles, which

announce the product and its features by way of catchy phrases. Films and

slides are another very effective way of marketing. The y a re screened at

village theatres or at farmer meetings specially organized to inform them about

the product. The films are either educational where only the product story is

told or they may be theme based like a feature film wherein the product story is

told through dramatization of a theme which appeals to the farmer. Other

media used are wall paintings, hoardings and point of purchase media like

posters and danglers.

Another effective way of marketing is “word-of-mouth publicity”. The

company targets influencers like village sarpanch or a very prosperous farmer

who enjoys very good reputation among the farmers. These people inform

other farmers about the company and its products.

e. Public relations

This element is used to build preferences and awareness among the

farmers. This is done through trade fairs, sponsorship of events, public service

activities. For instance, Syngenta is involved in a project called “Project

Sahyog” to help farmers cultivating rice. It also organizes lot of training

programmes to create awareness and train the farmers about modern farming

techniques and use of High Yielding Varieties. This is in short the marketing

strategy of Syngenta Cropscience. Other agrochemical companies also adopt a

similar strategy.


3.9 Competitive Positioning of the Key Players

The Indian pesticides market can be divided into three major groups as

follows: On the one hand, there are large Indian companies that produce both

technical grade pesticides and formulations and have a large product portfolio

of generic products. Key players among them are Excel Industries, Rallis

Industries. On the other side, there are a larger number of subsidiaries of

multinational companies catering to niche segments like specialty products.

The chief players are Monsanto Chemicals, Bayer (India), Novartis (India) and

Cyanamid Agro. Lastly, there is presence of a large number of small players

engaged in formulation business. The local market is characterized by large

capacities with low capacity utilization that has resulted in a steady decline in

the selling prices of many generic products. The uncertain weather conditions

coupled with long credit period for farmers and poor economic status of

farmers have resulted in low margins for the players in the industry. Many

Indian players have very little investments in research and development

activities. Consequently, the Indian players own very few proprietary

molecules and product patents. Patent protection is necessary so that producers

can invest in intensive research and development and identify new and more

effective but less harmful products. The following factors are considered by

industry players as critical for the future growth in this industry:

To have a global reach: There are more than 100 countries particularly

high priced US and European markets, which offer opportunities for the

Indian players to improve sales revenues and improve capacity

utilization.

To obtain global registration: It is mandatory for players operating

outside India to comply with various rules and regulations like

registration of pesticides to enable local sales in the country.

To have extensive distribution channels: A strong reach across the

country using a network of wholesalers and retailers spread


geographically across cities and regions will enable the players to

consolidate their position with reference to unorganized players.

To have large product portfolio: Wide range of product portfolio

covering most of the target markets which are experiencing substantial

growth.

In future, the firms will have to set up integrated world class

manufacturing facilities employing state of the art process and technologies

developed through in-housing research and development to survive in the

fiercely competitive market. Besides, companies will have to provide superior

quality products at cheaper prices with complementary services and build

customer franchise. 3.10 Opportunities for Indian Players

The following table briefly enumerates the opportunities of Indian

players in the industry based on the characteristics of the agrochemical industry

as follows:

TABLE: 3.12

CHARACTERISTICS OF THE AGROCHEMICAL INDUSTRY AND

OPPORTUNITIES FOR INDIAN PLAYERS

Characteristics of the agrochemical industry Opportunities for Indian players

Limited Research and development activities

Exploit the generic business as 70% of molecules are off patent

Seasonal demand Opportunity to tap commercial crops

Environmental regulations Set up manufacturing base for global players

Small scale of operations Develop niche markets and low dosage molecules in future

Large unutilized idle capacity Opportunity to develop new markets and increase awareness level for pesticides usage


References

Pesticides in Agriculture, http://agropedia.iitk.ac.in/?q=content/pesticides-agriculture, Thu, 11/06/2009

http://www.indiastudychannel.com/resources/126100-

PESTICIDES.aspx

http://www.pesticides-india.com/

Ashok Kumar Ora, Bharat Bhushan Sharma ,Manish Singhal and

Kamal Bhukkal, Report on Pesticides Industry, Submitted to Institute of

Agri Business Management, S K Rajasthan Agricultural University, Bikaner. 2011

Sujit Choudhury (2002), Distribution network analysis for marketing of

fertilizer in West Bengal, http://www.geospatialworld.net

Marketing of Pesticides: Case study on Syngenta Croscience, Project on

Agrochemical, http://www.scribd.con/doc/21254546/Project-Report-on-

Agrochemicals 26


http://www.indiastudychannel.com/resources/126100-PESTICIDES.aspx

http://www.indiastudychannel.com/resources/126100-PESTICIDES.aspx

http://www.pesticides-india.com/

http://www.geospatialworld.net/

http://www.scribd.con/doc/21254546/Project-Report-on-Agrochemicals

http://www.scribd.con/doc/21254546/Project-Report-on-Agrochemicals

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