India’s Pesticide Market

05.08.2025

India’s Pesticide Market

Context:
India’s crop protection sector is shifting, with herbicides booming due to labour shortages, mechanised farming, and preventive practices in labour-intensive crops like rice and wheat.

About Crop Protection Market

Definition:
 Crop protection chemicals, broadly referred to as pesticides, are substances used to shield crops from various biotic stresses. They fall under three primary categories:

• Insecticides – combat insect pests,
   
• Fungicides – prevent or control fungal infections,
   
• Herbicides – suppress or eliminate unwanted weeds.
   

Herbicide Boom:

1. Labour Shortages in Rural India

India’s rural agricultural workforce is diminishing both in size and availability. Manual weeding, once the norm, is now both expensive and inefficient:

• Wage Inflation: Agricultural wages increased from ₹326 per day in 2019 to ₹447 in 2024, indicating significant wage inflation impacting farm labour costs across India.
   
• Seasonal Scarcity: Peak weeding times coincide with other harvests, creating labour bottlenecks.
   Herbicides offer a time-saving alternative, with application taking just 1–2 hours per acre compared to 8–10 hours manually.
   

2. Timeliness and Preventive Use

Herbicides are no longer used merely as curative agents but are increasingly employed as preventive tools:

• Pre-emergent sprays are applied before or at sowing, especially in paddy (₹550 crore) and wheat (₹200 crore) segments.
   
• These prevent weed growth altogether, improving fertiliser efficiency and reducing crop competition for nutrients.
   

3. Rise of Mechanisation and Smart Practices

Use of mechanical sprayers, drones, and AI-supported farming tools is enabling precision application, reducing wastage and improving yield consistency.

Impacts on the Agriculture Ecosystem

Regulatory and Policy Challenges

1. Ecological Risks and Chemical Resistance:
    Over-dependence on herbicides can foster resistant weed species and lead to ecological imbalance.
    
2. Access and Affordability for Smallholders:
    Marginal farmers may find quality herbicides unaffordable without bulk-buying systems or subsidy support.
    
3. Domestic R&D Lag:
    Unlike China’s Sinochem or Western giants, India lacks a strong, state-supported agrochemical behemoth. Investment in public-private innovation is limited.
    
4. Regulation and Awareness:
    There is a pressing need to improve regulatory oversight, mandate safe usage guidelines, and enhance farmer training via institutions like KVKs and FPOs.
    

Way Forward

1. Boost Indigenous R&D and IPR

• Set up National Herbicide Innovation Centres.
   
• Encourage patent filings for indigenous formulations.
   
• Offer fiscal incentives to Indian start-ups in agri-chemicals.
   

2. Integrated Weed Management (IWM)

• Promote a hybrid model that integrates manual, mechanical, and chemical weed control.
   
• Reduce ecological dependence on a single method of weed suppression.
   

3. Public Sector Participation

• Encourage public sector undertakings (PSUs) to manufacture generic herbicides.
   
• This can create pricing parity and reduce MNC hegemony.
   

4. Training and Responsible Use

• Mandate herbicide training for marginal farmers using digital apps, FPOs, and Krishi Vigyan Kendras.
   
• Emphasise correct dosage, timing, and disposal practices.
   

5. Subsidised Pricing Models

• Implement Direct Benefit Transfer (DBT) for low-income farmers.
   
• Encourage farmer cooperatives for pooled procurement to enhance affordability.
   

Conclusion

The sharp rise in herbicide usage reflects not just a product trend but a deeper transformation in India’s agricultural economy. It symbolizes the shift from labour-intensive to input-optimised farming, spurred by demographic shifts, rising wage pressures, and mechanisation.