19 January 2024, New Delhi: The agrochemical industry has entered 2024 with cautious optimism emerging out of the challenges encountered in the year 2023. The agriculture sector during 2023 saw GVA falling to 1.8% while the underlying key drivers for the agrochemical industry remained intact. Hence, there is a need for the sector to reboot itself.
The second half of the year 2023 witnessed a significant adverse impact of destocking on the crop protection industry, globally. During 2024, weather permitting, one anticipates an upturn in the Indian crop protection industry only towards the third/fourth quarter of the year, signaling a return to normalcy in the overall market dynamics. While the area under sowing for the Rabi 2023 is largely intact for field crops, the reduction in the pulses and oil seeds area in the sowing is negative for the industry.
Raju Kapoor, Director, Industry & Public Affairs, FMC India speaking on FY23 overview and budget expectations said, “One should expect moderation in the ‘dumping’ of agrochemicals from China. A significant advancement on the technology front is the much-expected ramp-up of the use of ‘drones as a service’ for applying fertilizers and agrochemicals. It is likely to get a major boost with the introduction of the government-backed ‘Drone Didi’ scheme. Better coordination between fertilizer and agrochemical industry would help stabilize drones as a service concept, improving the efficiency and efficacy of crop protection and nutritional use efficiency.”
“We should also expect launches of newer molecules to combat stubborn weeds such as Phalaris in wheat crops and insecticides segment, such as pink bollworms. This is expected to get a push by the declared intent of the regulatory body, the central insecticide board, to rationalize the time taken for regulatory approvals of new molecules”, he added.
“The continuing growth of horticulture output would be positive for sustained demand for fungicides. While generic products may face pressure, the industry’s forward-looking approach, coupled with supportive government schemes may ensure the industry returns to a growth path.In essence, the agriculture industry’s prospects in 2024 are characterized by its resilience, innovation, and strategic actions. As we manage inventory adjustments and adopt new technologies, the sector is positioned for a year of expansion, bolstered by strong food demand and a commitment to sustainable farming practices”, Mr. Kapoor concluded.
(For Latest Agriculture News & Updates, follow Krishak Jagat on Google News)