Agriculture and its allied sectors continue to remain central to the Indian economy, contributing nearly 17% to our GDP in 2019–20.
More important, it is a source of livelihood for more than 50% of the country’s population.
As a result, a sector like agrochemicals, is on a far stronger wicket than many others in the economy, driven by major government actions and interventions.
The Indian agrochemical market is worth ₹38,000 crore divided almost equally, between India’s domestic consumption at ₹20,000 crore and exports accounting for ₹18,000 crore.
Despite the challenges of the lockdown due to Wuhan Corona Virus, the agrochemical industry will continue to expand in the coming year with an expected growth in agricultural output.
India expects a record 298.3 million tonnes of foodgrain production in 2020, of which 149.92 million tonnes in the kharif (summer) season and 148.4 million tonnes during the rabi (winter) season, representing a 2% projected growth compared to the previous year.
Data from the Department of Fertilizers shows a surge in all-India nutrient sales at 20.56 lakh tonnes (2.06 million tonnes) in April 2020, as against 14.17 lakh tonnes (1.42 million tonnes) in April 2019.
Urea sales grew by 36.2% in April 2020 over the corresponding month last year.
The Top Three Agro Chemical and Pesticides companies in India (in terms of Market Capitalisation are)
- UPL
- PI Industries; and
- Bayer Crop Sciences
From a more long-term perspective, the agrochemical industry will have to leverage new opportunities that have appeared as an outcome of the Wuhan Corona Virus crisis such as shifting manufacturing away from China.
In wake of the government’s support of this shift, it could be a game-changer for the industry and first movers will benefit strongly.
(Disclaimer : This blog is for information only. Please read detailed disclaimer at the bottom of this web page.)
