India ranks 10th in the world in pesticide consumption as its total consumption amounts to about 500 million tonnes. India is presently the largest manufacturer of basic pesticides among the South Asian and African countries, with the exception of Japan. The Indian pesticides market is the 12th largest in the world with a value of US$0.6 bn, which is 1.6% of the global market pie. India is one of the most dynamic generic pesticide industries in the world, having a total installed capacity of technical grade pesticides consisting of large and medium scale and 400 pesticide formulators (of all sectors) spread all over the country for use in agriculture, public health, household and plant protection. Overall, it can be said that there is a bright future for agro-chemical companies in India in the post-patent era. This paper focuses on the opportunities arising for companies dealing in pesticides because of the agrarian nature of the Indian economy. Besides, it presents a conceptual framework of the situation prevailing in the marketing of pesticides in India with special reference to Punjab.
The
world pesticide market grew for the third year in a row, according
to three independent industry estimates. The British Agrochemical
Association (BAA) reports that sales around the world rose
by 3.6% in 1996, i.e., to approximately US$31.25 bn. Another
estimate by the German industrial association (IVA) shows
total world sales rising by 4.4%. A third estimate by Allan
Woodburn Associates, a UK consulting firm, reports a 2.2%
increase in the 1996 world market.
The
global pesticide industry is optimistic about continuing sales
growth, according to the British Agrochemicals Association,
which foresees growth of 2-3% in real terms for 1997. Markets
in Brazil, India, China, Mexico, Argentina, Western Europe
and the US are all expected to grow, ranging from 1% in Western
Europe to 5% in China. The BAA predicts that pesticide sales
in the US will be boosted by wider use of genetically engineered
herbicide-tolerant crops, and by the Freedom to Farm Act,
which will lead to greater plantings of cereals. |
