Technavio’s research analyst predicts the agrochemical market in India to grow steadily at a CAGR of over 9% during the forecast period. Availability of credit facilities to purchase agrochemicals is the primary driver for the market. The government of India has initiated several policy measures to enable farmers to gain access to credit facilities. These policies emphasize in providing timely and adequate credit support to all farmers. The Indian government has been focusing mostly on small and marginal farmers and the weaker sections of the society, to enable them to adopt modern technology and improved agricultural practices, thereby increasing agricultural production and productivity.
The implementation of integrated pest management (IPM) as a new method of crop protection is another trending factor driving the growth of the agrochemicals market in India. The IPM method is a sustainable approach to pest management that combines biological, mechanical, physical, and chemical methods. These methods are executed in three stages, namely prevention, observation, and intervention.
Product segmentation and analysis of the agrochemicals market in India
The insecticides segment held the largest share of the agrochemicals market in India during 2015, with a market share of around 56%. The increasing demand for insecticides is driving vendors to consistently enhance their product portfolios through new product launches and by increasing their production capacity. The dominance of this segment is expected to continue over the next five years.
Competitive landscape and key vendors
The agrochemicals market in India is dominated by international players who are increasingly expanding their footprint in the market, making it difficult for regional providers to compete with them, especially in terms of features such as quality, technology, and price. The market is expected to witness a lot of mergers and acquisitions over the next five years, wherein regional or local players will be acquired by, or merged with international vendors.
The leading vendors in the market are -
The other prominent vendors in the market include Dhanuka, Dow Agroscience, Dupont, and Insecticides India.
Growth drivers, challenges, and upcoming trends - Agrochemicals
Technavio’s market research analysts highlight upcoming trends such as the introduction of biopesticides, which offer an ecologically sound and effective solution to pest problems. Biopesticides are less harmful and pose less of a threat to the environment and human health.
This report provides a number of factors contributing to the adoption, limitations, and opportunities of the agrochemicals market in India. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.
Key questions answered in the report
What will the market size and the growth rate be in 2020?
What are the key factors driving the agrochemicals market in India?
What are the key market trends impacting the growth of the agrochemicals market in India?
What are the challenges to market growth?
Who are the key vendors in this market space?
What are the market opportunities and threats faced by the vendors in the agrochemicals market in India?
What are the key outcomes of the five forces analysis of the agrochemicals market in India?
Technavio also offers customization on reports based on specific client requirement.
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Technavio Announces the Publication of its Research Report – Agrochemicals Market in India 2016-2020 Technavio recognizes the following companies as the key players in the Agrochemicals Market in India: BASF, Bayer CropScience, Syngenta, Rallis and UPL Other Prominent Vendors in the market are: Dhanuka, Dow Agroscience, Dupont, and Insecticides India. Commenting on the report, an analyst from Technavio’s team said: “A shortage of farm labor triggered by migration and social welfare schemes such as NREGA is resulting in increased usage of herbicides in the country, which are cheaper and more economical. The rising labor wage component in the total cost of cultivation is also encouraging the use of herbicides and pesticides.” According to the report, the government has initiated several policy measures to improve access to credit facilities for farmers. There is particular focus on small and marginal farmers and weaker sections of society to enable them to adopt modern technology and improved agricultural practices in order to increase agricultural production and productivity. Further, the report states that with an increase in the adoption of genetically modified seeds, the use of chemical pesticides and herbicides is expected to decrease during the forecast period, thereby slowing down the growth of the market.