Shifts in India’s Pesticide Market

Syllabus: GS3/ Economy and agriculture

Context

• India’s pesticide market is undergoing a structural transformation, driven by shifting pest dynamics, labour shortages, and changing cropping practices.

Background

• Pesticides, or crop protection chemicals, include substances used to kill or deter pests that harm crops. These include:
  • Insecticides: For insect pests (e.g., white-backed plant hopper in paddy).
  • Fungicides: For fungal diseases (e.g., blast, sheath blight).
  • Herbicides: For weed control.
• Historically, pesticide use in India was low in the mid-20th century, but has grown with the Green Revolution. 
• In recent decades, regulatory changes (banning DDT, endosulfan etc.) and rising labour costs have boosted herbicide and biopesticide adoption.

Composition of India’s Crop Protection Market

• India’s organised domestic crop protection chemicals market is valued at roughly Rs 24,500 crore.
• The largest segment within that is insecticides (Rs 10,700 crore), followed by herbicides (Rs 8,200 crore) and fungicides (Rs 5,600 crore).
  • Herbicides are growing at >10% annually, highest among all sub-segments.
• Global scenario:
  • As per Food and Agriculture Organization (FAO), over 3.7 million tonnes of pesticides were used globally in 2022, doubling since 1990.
  • Asia leads in production and consumption, with China and India at the forefront.

Driving Factor for the Growth of Herbicides

• Manual weeding requires 8–10 hours per acre, while the average daily wage for plant protection workers rose to ₹447.6 in Dec 2024 (from ₹326.2 in 2019) according to the Labour Bureau’s data.
• Due to migration and rising opportunity costs, labour availability is erratic, especially during peak agricultural operations.
• Herbicides now act as labour substitutes, like tractors or mechanised harvesters.

Regulatory Framework

• Insecticides Act, 1968: Governs import, registration, manufacture, sale, transport, and use of pesticides.
• Banned/Restricted Pesticides: India has banned 46 pesticides; others like Paraquat and Glyphosate remain under scrutiny.
• CIB&RC (Central Insecticide Board & Registration Committee): Approves new pesticides and ensures safety compliance.
• Anupam Verma Committee: It was constituted by the Department of Agriculture & Farmers Welfare to review 66 pesticides which are banned/restricted in other countries but continued to be registered for use in India.

Schemes Promoting Sustainable Use of Pesticides

• National Mission on Sustainable Agriculture (NMSA): Encourages Integrated Pest Management (IPM) and climate-resilient farming.
• Paramparagat Krishi Vikas Yojana (PKVY): Promotes organic farming, including biopesticide usage.
• Kisan Drone Scheme (2022): Provides subsidies for agricultural drones, enabling precision spraying and reducing health risks.
• Kisan Kavach Protective Kit: Developed byDepartment of Biotechnology, it offers safety gear to pesticide applicators.

What are the Concerns?

• Environmental and Health Risks: Excessive or improper pesticide use leads to soil and water contamination, resistance buildup, and human health hazards.
• Regulatory Oversight: India lacks a robust regulatory framework like the EPA (USA) or EFSA (EU) for approving or banning hazardous chemicals.
• R&D and Indigenous Capacity: India is dependent on MNCs for active ingredients and formulations. It needs more investment in domestic R&D and public-private innovation platforms.

Way Ahead

• Promote Bio-pesticides: Streamline approval and incentivize production of eco-friendly alternatives.
• Strengthen Regulatory Enforcement: Improve state-level monitoring to curb the sale of spurious and substandard pesticides.
• Farmer Awareness & Training: Expand extension services to educate farmers on judicious, need-based pesticide use.
• Digital Traceability Systems: Implement QR-based tracking from manufacturer to farmer to ensure quality and transparency.
• Increase R&D Funding: Support innovation in green chemistry, nano-pesticides, and Integrated Pest Management (IPM).
• Ban Hazardous Chemicals: Phase out Class I pesticides (highly hazardous) in alignment with FAO-WHO guidelines.

Concluding Remarks

• India’s pesticide sector is at a crossroads—while it plays a crucial role in ensuring crop protection and food security, it simultaneously raises environmental and health concerns. 
• A judicious blend of regulation, innovation, and farmer awareness is essential to transition toward safer, more sustainable agriculture.

Source: IE