11 July 2024, New Delhi: The share of generic pesticides has now reached an all-time high of 93%in the world market while the share of patented pesticides is just 7%. The main reason for the poor share of patented pesticides is that many new chemistries that are launched fail to fit the cost of cultivation or give desired results on the field.
According to Agribusiness by S&P Global, the total agrochemical market is valued at $75.5 billion (bn) as of 2022 of which the sale of generics is at $70.2 bn and the sale of patented agrochemicals is at $5.3 bn.
Total Agrochemical Market 2022 – Agribusiness by S&P Global
Agrochemical Market
Sale ($ bn)
Percentage
Generics
$70.2 bn
93%
Patented
$5.3 bn
7%
Total Agrochemical Market
$75.5 bn
100%
Source: Agribusiness by S&P Global
“In 2010, there were 10 new active ingredients commercially launched. In 2022, their total sale was only $486 million (mn) out of the total market of $75 bn. These were Bixafen, Isopyrazam, Ametoctradin, Isotianil, Pyrifluquinazon, Bacillus firmus, Valifenalate, Dimethyl Disulfide, Coumoxystrobin and Lepimectin. A similar trend is seen for other new active ingredients too”, said Deepak Shah, Chairman, Crop Care Federation of India (CCFI).
Farmers have been using conventional pesticides for years on all crops of economic importance for the control of pests and diseases. However, with the shortage of labour, the herbicide segment has grown with increased use on cotton, paddy, wheat, and soybean which has brought comfort in farming operations.
Top 20 Selling Generic Pesticides in the World
Rank
Active Ingredient
Sales ($ mn)
Segment
1
Glyphosate
7,898
Herbicide
2
Chlorantraniliprole
1,933
Insecticide
3
Glufosinate
1,533
Herbicide
4
Atrazine
1,414
Herbicide
5
Azoxystrobin
1,404
Fungicide
6
Thiamethoxam
1,161
Insecticide
7
Prothioconazole
1,151
Fungicide
8
Metolachlor
1,099
Herbicide
9
Pyraclostrobin
1,002
Fungicide
10
2,4-D
984
Herbicide
11
Imidacloprid
959
Insecticide
12
Mancozeb
955
Fungicide
13
Paraquat
895
Herbicide
14
Tebuconazole
874
Fungicide
15
Dicamba
849
Herbicide
16
Acetochlor
811
Herbicide
17
Lambda-Cyhalothrin
736
Insecticide
18
Trifloxystrobin
687
Fungicide
19
Abamectin
682
Fungicide
20
Acephate
667
Insecticide
Source: Agribusiness by S&P Global (Accessed on 3rd July 2024)
On analysing the data further, it is observed that among the 20 active ingredients, generic herbicides constitute 55% in terms of sales value followed by generic fungicides with a share of 24%, and insecticides at 21%.
“We have shared our detailed figures with Faiz Ahmed Kidwai, Additional Secretary, Ministry of Agriculture & Farmers Welfare to highlight the importance of generic pesticides not only in India but globally”, mentioned Deepak Shah.
“The key takeaway is that generic rules the roost in the global pesticides market and
many of the newly launched active ingredients (patented) struggle to establish in the marketplace.”
“This is the main reason why the MNCs are seeking data exclusivity in India. Their idea is to milk monopoly profits from patent expired products. India must never agree to grant data exclusivity for post-patented and old pesticides” said Mr. Deepak Shah.
Economic Importance Of Generic Pesticides
Explaining further Mr. Deepak Shah said “Generic pesticides have great economic importance in India as they result in significant cost reduction and therefore, most valuable for small and marginal farmers. As they are manufactured in India, they provide employment opportunities, to a variety of skilled and semi-skilled professionals. They help achieve the objective of Atmanirbhar Bharat and Make in Indiainitiatives of the Government Of India. They are export intensive and fetch valuable foreign exchange (trade surplus) as well.”
He further mentioned, “Granting data exclusivity to post patented old pesticides is detrimental to our interest. It will only end up repatriating profits from India to Western countries. It would delay the launch of new generics in Indian and global markets by Indian companies.”
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