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Knowledge Paper on January, 2015, Chandigarh Safer and Judicious use of Crop Protection Chemicals & Applications of Green Chemistry Knowledge and Strategy Partner
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Page 1: Knowledge Paper on Safer and Judicious use of …ficci.in/spdocument/20541/Kowledge-Paper-chem.pdfThe estimates reveal that Crop Protection Chemicals increases crop productivity by

Knowledge Paper on

January, 2015, Chandigarh

Safer and Judicious use of Crop Protection Chemicals & Applications of Green Chemistry

Knowledge and Strategy Partner

Page 2: Knowledge Paper on Safer and Judicious use of …ficci.in/spdocument/20541/Kowledge-Paper-chem.pdfThe estimates reveal that Crop Protection Chemicals increases crop productivity by

Knowledge and Strategy Partner

Knowledge Paper on

January, 2015, Chandigarh

Safer and Judicious use of Crop Protection Chemicals & Applications of Green Chemistry

Page 3: Knowledge Paper on Safer and Judicious use of …ficci.in/spdocument/20541/Kowledge-Paper-chem.pdfThe estimates reveal that Crop Protection Chemicals increases crop productivity by

Knowledge and Strategy Partner

Knowledge Paper on

January, 2015, Chandigarh

Safer and Judicious use of Crop Protection Chemicals & Applications of Green Chemistry

Page 4: Knowledge Paper on Safer and Judicious use of …ficci.in/spdocument/20541/Kowledge-Paper-chem.pdfThe estimates reveal that Crop Protection Chemicals increases crop productivity by

Knowledge and Strategy Partner

Page 5: Knowledge Paper on Safer and Judicious use of …ficci.in/spdocument/20541/Kowledge-Paper-chem.pdfThe estimates reveal that Crop Protection Chemicals increases crop productivity by

Knowledge and Strategy Partner

Page 6: Knowledge Paper on Safer and Judicious use of …ficci.in/spdocument/20541/Kowledge-Paper-chem.pdfThe estimates reveal that Crop Protection Chemicals increases crop productivity by

01

Knowledge and Strategy Partner

Table of Content

1 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03

2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05

3 Indian market overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07

3.1 Domestic consumption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08

3.2 Distribution of crop protection market by Product category . . . . . . 08

3.3 The shift towards Green Chemistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09

4 Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

5 Opportunities and Growth Drivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

6 Green Chemistry in Agrochemical Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

6.1 Green Chemistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

6.2 Green Chemistry Implementation Strategies . . . . . . . . . . . . . . . . . . . . . . 12

6.3 Short Term Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

6.4 Medium Term Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

6.5 Long Term Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

7 Judicious use of Crop Protection Chemicals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

8 The Way Ahead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

9 Application of Make in India Concept in Crop Protection . . . . . . . . . . . . . . 25

Chemicals Sector

9 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

10 About Tata Strategic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Tata Strategic Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Manish PanchalPractice Head - Chemical & Energy

Tata Strategic Management Group

[email protected]

Charu Kapoor Principal - Chemicals

Tata Strategic Management Group

[email protected]

FICCI with support of TATA Strategic Management Group (TSMG) has been regularly

tracking the trends in the agrochemical industry and supporting companies, both

big and small, across various verticals to achieve business excellence. The same

knowledge and experience gives us an additional advantage to realize this report.

The rising population, increasing food demand, shrinking agriculture land area and

loss of crops due to the attack of pests and diseases will require us to produce more

from the same farmland in coming years. To achieve the higher yield, crop

protection chemicals will play an important role. Simultaneously, it will also be

critical to use them judiciously in order to maximize benefits and minimize the

impact on non-targeted species. Achieving both of these objectives will require

companies to shift towards “specialized products” and continuously improve

awareness for end users. In this report, we have highlighted the current market

scenario for Crop Protection Chemicals in India and the shifts which are happening

in this industry.

For a balanced growth of Crop Protection Chemicals industry, it will also be essential

for companies producing crop protection products to evaluate possibilities to move

to “green” processes and products. Through this report we have also attempted to

highlight possible strategies to implement green chemistry practices.

With the current government's 'Make In India' campaign, the agrochemical

industry is likely to benefit due to large installed capacities.

As always it was an insightful experience for the team to materialize this report. We

hope it acts as a guiding light both for the players and the consumers of crop

protection products.

Foreword

P S SinghHead- Chemicals

FICCI

[email protected]

Knowledge and Strategy Partner

Page 7: Knowledge Paper on Safer and Judicious use of …ficci.in/spdocument/20541/Kowledge-Paper-chem.pdfThe estimates reveal that Crop Protection Chemicals increases crop productivity by

01

Knowledge and Strategy Partner

Table of Content

1 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03

2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05

3 Indian market overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07

3.1 Domestic consumption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08

3.2 Distribution of crop protection market by Product category . . . . . . 08

3.3 The shift towards Green Chemistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09

4 Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

5 Opportunities and Growth Drivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

6 Green Chemistry in Agrochemical Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

6.1 Green Chemistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

6.2 Green Chemistry Implementation Strategies . . . . . . . . . . . . . . . . . . . . . . 12

6.3 Short Term Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

6.4 Medium Term Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

6.5 Long Term Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

7 Judicious use of Crop Protection Chemicals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

8 The Way Ahead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

9 Application of Make in India Concept in Crop Protection . . . . . . . . . . . . . . 25

Chemicals Sector

9 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

10 About Tata Strategic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Tata Strategic Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Manish PanchalPractice Head - Chemical & Energy

Tata Strategic Management Group

[email protected]

Charu Kapoor Principal - Chemicals

Tata Strategic Management Group

[email protected]

FICCI with support of TATA Strategic Management Group (TSMG) has been regularly

tracking the trends in the agrochemical industry and supporting companies, both

big and small, across various verticals to achieve business excellence. The same

knowledge and experience gives us an additional advantage to realize this report.

The rising population, increasing food demand, shrinking agriculture land area and

loss of crops due to the attack of pests and diseases will require us to produce more

from the same farmland in coming years. To achieve the higher yield, crop

protection chemicals will play an important role. Simultaneously, it will also be

critical to use them judiciously in order to maximize benefits and minimize the

impact on non-targeted species. Achieving both of these objectives will require

companies to shift towards “specialized products” and continuously improve

awareness for end users. In this report, we have highlighted the current market

scenario for Crop Protection Chemicals in India and the shifts which are happening

in this industry.

For a balanced growth of Crop Protection Chemicals industry, it will also be essential

for companies producing crop protection products to evaluate possibilities to move

to “green” processes and products. Through this report we have also attempted to

highlight possible strategies to implement green chemistry practices.

With the current government's 'Make In India' campaign, the agrochemical

industry is likely to benefit due to large installed capacities.

As always it was an insightful experience for the team to materialize this report. We

hope it acts as a guiding light both for the players and the consumers of crop

protection products.

Foreword

P S SinghHead- Chemicals

FICCI

[email protected]

Knowledge and Strategy Partner

Page 8: Knowledge Paper on Safer and Judicious use of …ficci.in/spdocument/20541/Kowledge-Paper-chem.pdfThe estimates reveal that Crop Protection Chemicals increases crop productivity by

Knowledge and Strategy Partner

02 03

Knowledge and Strategy Partner

Figure 1: Losses caused by different pests (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05

Figure 2: Indian Crop Protection Market, FY14 (USD Bn) . . . . . . . . . . . . . . . . . . . . . . . . . 07

Figure 3: Per capita consumption of pesticides (Kg/ ha), FY14 . . . . . . . . . . . . . . . . . . . . 08

Figure 4: Crop protection market split, India, FY14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09

Figure 5: Green Chemistry Implementation Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Figure 6: Advantages of Microwave Chemistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Figure 7: Global bio-pesticides market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Figure 8: The Way Ahead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

LIST OF FIGURES

This report is developed by Tata Strategic Management Group with

support of FICCI as the knowledge paper for the “Safer and Judicious

use of Crop Protection Chemicals and applications of Green

Chemistry” seminar.

The Indian crop protection industry as of FY '14 stood at USD 4.25 billion and

is expected to grow at a CAGR of 12% for the next five years. Going ahead,

opportunities for the Indian crop protection industry will come from exports,

higher production of generic products, product portfolio expansion, and

growth in herbicides and fungicides.

In coming years, the need for safe and effective use of crop protection

chemicals will further increase to brace with larger climatic variations and

emergence of new invasive insects, weeds and diseases. Hence, it is

important for companies to invest today in science and practices which

promote safe and judicious use of crop chemicals.

Judicious use of pesticides implies using the right product, with correct

dosage and with correct application methodology. When used judiciously,

the products deliver maximum impact on the target species. Therefore, it is

critical for both the government and for Crop Protection Chemicals

manufacturers to work closely with the farmers and farmers associations to

Executive summary1

Page 9: Knowledge Paper on Safer and Judicious use of …ficci.in/spdocument/20541/Kowledge-Paper-chem.pdfThe estimates reveal that Crop Protection Chemicals increases crop productivity by

Knowledge and Strategy Partner

02 03

Knowledge and Strategy Partner

Figure 1: Losses caused by different pests (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05

Figure 2: Indian Crop Protection Market, FY14 (USD Bn) . . . . . . . . . . . . . . . . . . . . . . . . . 07

Figure 3: Per capita consumption of pesticides (Kg/ ha), FY14 . . . . . . . . . . . . . . . . . . . . 08

Figure 4: Crop protection market split, India, FY14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09

Figure 5: Green Chemistry Implementation Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Figure 6: Advantages of Microwave Chemistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Figure 7: Global bio-pesticides market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Figure 8: The Way Ahead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

LIST OF FIGURES

This report is developed by Tata Strategic Management Group with

support of FICCI as the knowledge paper for the “Safer and Judicious

use of Crop Protection Chemicals and applications of Green

Chemistry” seminar.

The Indian crop protection industry as of FY '14 stood at USD 4.25 billion and

is expected to grow at a CAGR of 12% for the next five years. Going ahead,

opportunities for the Indian crop protection industry will come from exports,

higher production of generic products, product portfolio expansion, and

growth in herbicides and fungicides.

In coming years, the need for safe and effective use of crop protection

chemicals will further increase to brace with larger climatic variations and

emergence of new invasive insects, weeds and diseases. Hence, it is

important for companies to invest today in science and practices which

promote safe and judicious use of crop chemicals.

Judicious use of pesticides implies using the right product, with correct

dosage and with correct application methodology. When used judiciously,

the products deliver maximum impact on the target species. Therefore, it is

critical for both the government and for Crop Protection Chemicals

manufacturers to work closely with the farmers and farmers associations to

Executive summary1

Page 10: Knowledge Paper on Safer and Judicious use of …ficci.in/spdocument/20541/Kowledge-Paper-chem.pdfThe estimates reveal that Crop Protection Chemicals increases crop productivity by

Knowledge and Strategy Partner

04

Knowledge and Strategy Partner

educate them on safe and judicious use of existing pesticides as well as

advancements happening in products on a regular basis.

Internally, crop protection products manufacturers can also consider

performing a process and environmental impact audit of their existing

products and adopt green chemistry practices. To move to “green practices”,

in the short term, companies can implement zero discharge solutions, adopt

COD reduction techniques and develop collaborative platforms. In the

medium term, companies can implement solvent recovery practices, explore

alternate green solvents, evaluate biocatalysts and microwave chemistry

technology. Over the long term, companies may focus on developing bio-

pesticides, implement process innovation to achieve a better material

balance and build symbiotic relationships with key stake holders.

The future of Crop Protection Chemicals industry is bright. It is expected to

grow at a CAGR of 12% between FY 14 and FY 19 to reach USD 7.5 Bn. In

coming years, agrochemical industry should focus on developing new

processes and products with sustainability as the core principle. This requires

developing a collaborative platform in which the academia, government and

regulatory bodies, farmers associations, manufacturers and farmers come

together to promote safe and judicious usage of pesticides.

With the government's 'Make In India' campaign it becomes imperative for

the government to provide special support to this industry to enable it to

achieve its true potential.

The world's population currently stands at 7 billion and is estimated to rise to

9.3 billion by 2050. This will require the global food production to be

increased by 70% over the same time period in order to meet the demand.

While there is a need to grow more food to meet future demand, the world currently

is facing challenges of food shortage, increasing malnutrition, and rising food

inflation. To add to the problems, 25% to 40% of world crop output is lost due to the

attack of pests, weeds and diseases (Ref: Figure 1)

The estimates reveal that Crop Protection Chemicals increases crop productivity by

20-50%, which helps mitigate the 20-40% of crop loss from pest attacks. About 20%

of the entire world's agricultural production would be lost to post-harvest pest

attacks if no crop protection chemicals were used. Therefore, Crop Protection

Chemicals makes excellent financial sense as farmers can get back up-to 14 times

their investments in Crop Protection Chemicals.

Introduction2

Figure 1: Losses caused by different pests (%)

Rodents,

6%Others, 8%

Weeds,

33%

Insects,

26%

Diseases,

26%

Source: Industry Reports, Analysis by Tata Strategic

05

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Knowledge and Strategy Partner

04

Knowledge and Strategy Partner

educate them on safe and judicious use of existing pesticides as well as

advancements happening in products on a regular basis.

Internally, crop protection products manufacturers can also consider

performing a process and environmental impact audit of their existing

products and adopt green chemistry practices. To move to “green practices”,

in the short term, companies can implement zero discharge solutions, adopt

COD reduction techniques and develop collaborative platforms. In the

medium term, companies can implement solvent recovery practices, explore

alternate green solvents, evaluate biocatalysts and microwave chemistry

technology. Over the long term, companies may focus on developing bio-

pesticides, implement process innovation to achieve a better material

balance and build symbiotic relationships with key stake holders.

The future of Crop Protection Chemicals industry is bright. It is expected to

grow at a CAGR of 12% between FY 14 and FY 19 to reach USD 7.5 Bn. In

coming years, agrochemical industry should focus on developing new

processes and products with sustainability as the core principle. This requires

developing a collaborative platform in which the academia, government and

regulatory bodies, farmers associations, manufacturers and farmers come

together to promote safe and judicious usage of pesticides.

With the government's 'Make In India' campaign it becomes imperative for

the government to provide special support to this industry to enable it to

achieve its true potential.

The world's population currently stands at 7 billion and is estimated to rise to

9.3 billion by 2050. This will require the global food production to be

increased by 70% over the same time period in order to meet the demand.

While there is a need to grow more food to meet future demand, the world currently

is facing challenges of food shortage, increasing malnutrition, and rising food

inflation. To add to the problems, 25% to 40% of world crop output is lost due to the

attack of pests, weeds and diseases (Ref: Figure 1)

The estimates reveal that Crop Protection Chemicals increases crop productivity by

20-50%, which helps mitigate the 20-40% of crop loss from pest attacks. About 20%

of the entire world's agricultural production would be lost to post-harvest pest

attacks if no crop protection chemicals were used. Therefore, Crop Protection

Chemicals makes excellent financial sense as farmers can get back up-to 14 times

their investments in Crop Protection Chemicals.

Introduction2

Figure 1: Losses caused by different pests (%)

Rodents,

6%Others, 8%

Weeds,

33%

Insects,

26%

Diseases,

26%

Source: Industry Reports, Analysis by Tata Strategic

05

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Knowledge and Strategy Partner

06 01

Knowledge and Strategy PartnerKnowledge and Strategy Partner

Despite their significant benefits when Crop Protection Chemicals are not

used as directed or not handled with due care, loss of yield and /or

environmental and health challenges emerge. Therefore, it is essential for the

farmers to be well educated about the various pros and cons of the products

which they are using. For example, indiscriminate usage of urea in India in

place of potash and phosphorus leads to imbalance in soil.

To successfully reap the benefits of crop protection products without

compromising the environment and human health, it is essential that

producers and users of crop protection products to focus the following

elements:

1. Use crop protection products judiciously

2. Move towards “green” Crop Protection Chemicals

3. Shift to green chemistry manufacturing processes

The following sections of the report highlight the Indian crop protection

market, the opportunities and challenges of the sector, green chemistry

implementation strategies for companies and recommendations on

judicious use of crop protection products.

The Indian crop protection industry is estimated to be USD 4.25 billion in FY14

and is expected to grow at a CAGR of 12% to reach USD 7.5 billion by FY19

(Ref: Figure 2). The exports currently constitute almost 50% of the Indian crop

protection industry and are expected to grow at a CAGR of 16% to reach USD 4.2

billion by FY19, resulting in 60% share in Indian crop protection industry. Domestic

market on the other hand would however grow at 8% CAGR, as it is predominantly

monsoon dependent, to reach USD 3.3 billion by FY19. India is the fourth largest

producer of crop protection chemicals globally, after United States, Japan & China.

The crop protection companies in India can be categorized into three types -Multi-

National, Indian including the public sector companies and small sector units.

Indian Market Overview3

Figure 2: Indian Crop Protection Chemicals Market, FY14 (USD Bn)

Domestic

Exports

2.253.3

2.0

4.2

8%

16%

Total USD 4.25 billion USD 7.5 billion

FY14 FY19

12%

Source: Industry reports, Analysis by Tata Strategic

07

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Knowledge and Strategy Partner

06 01

Knowledge and Strategy PartnerKnowledge and Strategy Partner

Despite their significant benefits when Crop Protection Chemicals are not

used as directed or not handled with due care, loss of yield and /or

environmental and health challenges emerge. Therefore, it is essential for the

farmers to be well educated about the various pros and cons of the products

which they are using. For example, indiscriminate usage of urea in India in

place of potash and phosphorus leads to imbalance in soil.

To successfully reap the benefits of crop protection products without

compromising the environment and human health, it is essential that

producers and users of crop protection products to focus the following

elements:

1. Use crop protection products judiciously

2. Move towards “green” Crop Protection Chemicals

3. Shift to green chemistry manufacturing processes

The following sections of the report highlight the Indian crop protection

market, the opportunities and challenges of the sector, green chemistry

implementation strategies for companies and recommendations on

judicious use of crop protection products.

The Indian crop protection industry is estimated to be USD 4.25 billion in FY14

and is expected to grow at a CAGR of 12% to reach USD 7.5 billion by FY19

(Ref: Figure 2). The exports currently constitute almost 50% of the Indian crop

protection industry and are expected to grow at a CAGR of 16% to reach USD 4.2

billion by FY19, resulting in 60% share in Indian crop protection industry. Domestic

market on the other hand would however grow at 8% CAGR, as it is predominantly

monsoon dependent, to reach USD 3.3 billion by FY19. India is the fourth largest

producer of crop protection chemicals globally, after United States, Japan & China.

The crop protection companies in India can be categorized into three types -Multi-

National, Indian including the public sector companies and small sector units.

Indian Market Overview3

Figure 2: Indian Crop Protection Chemicals Market, FY14 (USD Bn)

Domestic

Exports

2.253.3

2.0

4.2

8%

16%

Total USD 4.25 billion USD 7.5 billion

FY14 FY19

12%

Source: Industry reports, Analysis by Tata Strategic

07

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Knowledge and Strategy Partner

08

3.1 Domestic consumption

The per capita consumption of crop protection products in India is amongst

the lowest in the world. Currently the per capita consumption of pesticides in

India stands at 0.6 kg/ ha as compared to 5 kg/ha in UK and 7 kg/ ha in USA

(Ref: Figure 3). On the other hand the per capita consumption in other Asian

countries like Japan, China and Taiwan is almost 50 times as compared to the

Indian consumption. Low purchasing power of farmers, lack of awareness

amongst them and limited reach are some of the reasons for low

consumption of pesticides in India, thus creating tremendous opportunity

for the growth of crop protection industry in India.

Figure 3 : Per capita consumption of pesticides (Kg/ ha), FY14

3.2 Distribution of crop protection chemicals market

by Product category

Insecticides dominate the Indian crop protection market and form almost 60% of

the domestic crop protection chemicals market. The major applications are found in

rice and cotton crops. Fungicides and Herbicides are the largest growing segments

accounting for 18% and 16% respectively of the total crop protection chemicals

market (Ref: Figure 4).

Knowledge and Strategy Partner

Figure 4: Crop protection chemicals market split, India, FY14

As the weeds grow in damp and warm weather and die in cold seasons, the

sale of herbicides is seasonal. Rice and wheat crops are the major application

areas of herbicides. The fungicides find applications in fruits, vegetables and

rise and their increasing usage are due to shift in agriculture from cash crops

to fruits and vegetables and government support for exports.

Bio-pesticides include all biological materials organisms, which can be used

to control pests. Although they constitute only 3% of the Indian crop

protection market, they provide significant growth opportunities due to

increasing concern of safety and toxicity of pesticides, stringent regulations

and government support.

The Indian Agrochemical Industry is witnessing a gradual shift towards

implementation of green practices. Companies have started employing zero

discharge solutions in practice which has resulted in significant benefits. For

instance, a leading global company at its Gujarat plant was able to recover

more than 80% of water, reduce COD levels by 40 times and TDS levels by 60

times by implementation of zero discharge solutions. This helped the

company to comply with governmental norms, avoid liability costs, achieve

un-interrupted production and reduce production costs.

3.3 The shift towards Green Chemistry

17

0.6

5 5

7 7

1213

India

UK

Fran

ce

Kore

aUSA

Japa

n

China

Taiw

an

Source: Industry reports, Analysis by Tata Strategic

Insecticides,

60%

Herbicides,

16%

Fungicides,

18%

Others, 3%Biopesticides,

3%

Source: Industry reports, Analysis by Tata Strategic

09

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Knowledge and Strategy Partner

08

3.1 Domestic consumption

The per capita consumption of crop protection products in India is amongst

the lowest in the world. Currently the per capita consumption of pesticides in

India stands at 0.6 kg/ ha as compared to 5 kg/ha in UK and 7 kg/ ha in USA

(Ref: Figure 3). On the other hand the per capita consumption in other Asian

countries like Japan, China and Taiwan is almost 50 times as compared to the

Indian consumption. Low purchasing power of farmers, lack of awareness

amongst them and limited reach are some of the reasons for low

consumption of pesticides in India, thus creating tremendous opportunity

for the growth of crop protection industry in India.

Figure 3 : Per capita consumption of pesticides (Kg/ ha), FY14

3.2 Distribution of crop protection chemicals market

by Product category

Insecticides dominate the Indian crop protection market and form almost 60% of

the domestic crop protection chemicals market. The major applications are found in

rice and cotton crops. Fungicides and Herbicides are the largest growing segments

accounting for 18% and 16% respectively of the total crop protection chemicals

market (Ref: Figure 4).

Knowledge and Strategy Partner

Figure 4: Crop protection chemicals market split, India, FY14

As the weeds grow in damp and warm weather and die in cold seasons, the

sale of herbicides is seasonal. Rice and wheat crops are the major application

areas of herbicides. The fungicides find applications in fruits, vegetables and

rise and their increasing usage are due to shift in agriculture from cash crops

to fruits and vegetables and government support for exports.

Bio-pesticides include all biological materials organisms, which can be used

to control pests. Although they constitute only 3% of the Indian crop

protection market, they provide significant growth opportunities due to

increasing concern of safety and toxicity of pesticides, stringent regulations

and government support.

The Indian Agrochemical Industry is witnessing a gradual shift towards

implementation of green practices. Companies have started employing zero

discharge solutions in practice which has resulted in significant benefits. For

instance, a leading global company at its Gujarat plant was able to recover

more than 80% of water, reduce COD levels by 40 times and TDS levels by 60

times by implementation of zero discharge solutions. This helped the

company to comply with governmental norms, avoid liability costs, achieve

un-interrupted production and reduce production costs.

3.3 The shift towards Green Chemistry

17

0.6

5 5

7 7

1213

India

UK

Fran

ce

Kore

aUSA

Japa

n

China

Taiw

an

Source: Industry reports, Analysis by Tata Strategic

Insecticides,

60%

Herbicides,

16%

Fungicides,

18%

Others, 3%Biopesticides,

3%

Source: Industry reports, Analysis by Tata Strategic

09

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Knowledge and Strategy PartnerKnowledge and Strategy Partner

The Indian crop protection industry is facing numerous challenges. Some of

the critical challenges are highlighted below:

Knowledge and Strategy Partner

10 11

1.

2.

3.

4.

5.

6.

lStringent regulations across the world are increasing the cost of

developing new products and delaying the introduction of new products

in the market.

lLow focus on R&D by domestic manufacturers: Due to the rising R&D

costs Indian companies are unable to invest in R&D and hence focusing

on generic products.

lBuilding awareness among farmers: It is important to educate the

farmers about the right kind of pesticide, dosage and application

frequency.

lNeed for efficient distribution system: The lack of efficient distribution

system makes it difficult for the agrochemical companies to reach the

farmers to promote their products and educate them about their usage

and benefits.

lSpurious products: According to recent study done by TSMG, spurious

pesticides constitute around Rs. 3,000 Cr (USD 500 Mn.) and 30% by

volume in 2013 of the total Indian pesticide industry.

lLong registration period: It takes almost 10 years to bring a new

molecule and it can take up to 5 years to get a generic product registered.

Challenges 4 Opportunities and Growth Drivers 5

The Indian crop protection industry is facing numerous challenges. Some of

the critical challenges are highlighted below:

Some of the key opportunities and drivers for growth of the Indian crop

protection industry are highlighted as follows:

lExport Opportunities: High export potential due to low cost

manufacturing, availability of trained manpower, better price realization

and strong presence in generic pesticide manufacturing

lGrowth in generic products: During the period of 2014 - 2020 products

worth USD 6.3 billion are expected to go off-patent providing growth

opportunities for the Indian manufacturers.

lProduct portfolio expansion: Companies are looking to provide a

complete end to end solution right from land preparation, availability of

right quality of seeds and crop protection chemicals.

lGrowth in herbicides and fungicides: Labor shortage, rising labor costs

and growth in GM crops has led to growth in the use of herbicides and

fungicides.

lIncreasing demand for food grains and limited agricultural land

availability: The focus is to increase the yield per unit area under

cultivation resulting in increased usage of Crop Protection Chemicals.

lLow crop yields: The yield per hectare in India is amongst the lowest in

the world, 3 million tonnes per hectare as compared to the global average

of 4 million tonnes per hectare.

lRural Infrastructure and IT: Linking the production areas with the market

would help in easy distribution of pesticides. IT services would help create

awareness among farmers.

lAvailability of credit facilities: Easy credit facilities to farmers in the rural

areas will provide boost to the agriculture industry and use of more

pesticides in order to improve the crop yield.

1.

2.

3.

4.

5.

6.

7.

8.

Page 17: Knowledge Paper on Safer and Judicious use of …ficci.in/spdocument/20541/Kowledge-Paper-chem.pdfThe estimates reveal that Crop Protection Chemicals increases crop productivity by

Knowledge and Strategy PartnerKnowledge and Strategy Partner

The Indian crop protection industry is facing numerous challenges. Some of

the critical challenges are highlighted below:

Knowledge and Strategy Partner

10 11

1.

2.

3.

4.

5.

6.

lStringent regulations across the world are increasing the cost of

developing new products and delaying the introduction of new products

in the market.

lLow focus on R&D by domestic manufacturers: Due to the rising R&D

costs Indian companies are unable to invest in R&D and hence focusing

on generic products.

lBuilding awareness among farmers: It is important to educate the

farmers about the right kind of pesticide, dosage and application

frequency.

lNeed for efficient distribution system: The lack of efficient distribution

system makes it difficult for the agrochemical companies to reach the

farmers to promote their products and educate them about their usage

and benefits.

lSpurious products: According to recent study done by TSMG, spurious

pesticides constitute around Rs. 3,000 Cr (USD 500 Mn.) and 30% by

volume in 2013 of the total Indian pesticide industry.

lLong registration period: It takes almost 10 years to bring a new

molecule and it can take up to 5 years to get a generic product registered.

Challenges 4 Opportunities and Growth Drivers 5

The Indian crop protection industry is facing numerous challenges. Some of

the critical challenges are highlighted below:

Some of the key opportunities and drivers for growth of the Indian crop

protection industry are highlighted as follows:

lExport Opportunities: High export potential due to low cost

manufacturing, availability of trained manpower, better price realization

and strong presence in generic pesticide manufacturing

lGrowth in generic products: During the period of 2014 - 2020 products

worth USD 6.3 billion are expected to go off-patent providing growth

opportunities for the Indian manufacturers.

lProduct portfolio expansion: Companies are looking to provide a

complete end to end solution right from land preparation, availability of

right quality of seeds and crop protection chemicals.

lGrowth in herbicides and fungicides: Labor shortage, rising labor costs

and growth in GM crops has led to growth in the use of herbicides and

fungicides.

lIncreasing demand for food grains and limited agricultural land

availability: The focus is to increase the yield per unit area under

cultivation resulting in increased usage of Crop Protection Chemicals.

lLow crop yields: The yield per hectare in India is amongst the lowest in

the world, 3 million tonnes per hectare as compared to the global average

of 4 million tonnes per hectare.

lRural Infrastructure and IT: Linking the production areas with the market

would help in easy distribution of pesticides. IT services would help create

awareness among farmers.

lAvailability of credit facilities: Easy credit facilities to farmers in the rural

areas will provide boost to the agriculture industry and use of more

pesticides in order to improve the crop yield.

1.

2.

3.

4.

5.

6.

7.

8.

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Knowledge and Strategy Partner

12 01

Knowledge and Strategy PartnerKnowledge and Strategy Partner

6.1 Green Chemistry

Green chemistry is a philosophy of chemical research and engineering that

involves the design of products and processes that minimize the use and

generation of hazardous chemicals. Unlike the environmental chemistry

which focuses on the study of pollutant chemicals and their effect on nature,

green chemistry aims to reduce the pollution at the source. Green chemistry

involves waste minimization at source, use of catalysts in place of reagents,

use of non-toxic reagents, use of renewable resources, improved atom

efficiency and use of Solvent Free or Recyclable Environmentally Benign

Solvent systems.

Implementation of Green Chemistry practices can help the companies in

achieving material and energy efficiency and reduce the hazards involved in

the entire life cycle of the product.

6.2 Green Chemistry Implementation Strategies

Based on the implementation time, resources involved and associated

implementation risks green chemistry strategies can be categorized into

three types: Short term implementation strategies, medium term

implementation strategies and long term implementation strategies. (Ref:

Figure 5)

Green Chemistry in Crop Protection Chemicals Sector6

13

6.3 Short Term Strategies

On a short term basis the industry should look for possible ways to optimize

their current business practices by developing zero discharge solution,

developing means for reducing the COD (Chemical Oxygen Demand) levels

in the wastewater generated and by developing collaborative platforms so as

to learn from the best practices employed in other companies.

The conventional wastewater treatment processes do not remove salinity in

the treated effluent. Discharging the saline waste water pollutes the ground

and surface waters, also impacting the nutrient value of the soil. In order to

overcome the scarcity of water, impact of saline water discharge and

regulatory pressures associated, zero liquid discharge solutions have been

developed which mean zero discharge of wastewater from industries. It

involves advanced wastewater treatment technologies to recycle recover and

re-use the 'treated' wastewater, ensuring bare minimum discharge of

wastewater to the environment. Apart from reducing the environmental

waste discharge, it helps in 90-95% of water recovery and recovery of by-

products from the salts resulting in operational savings.

Industrial wastewater containing organic and inorganic impurities are toxic

and can't undergo direct biological treatment. The industrial wastewater

resulting from the spills, leaks, product washings and effluents discharged

from the chemical plants differ in characteristics amongst themselves and

from the domestic wastewater. Some of the key waste generating sectors are

pharma, Crop Protection Chemicals and pigment industries. In order to meet

6.3.1. Zero Discharge Solution

6.3.2. COD Reduction

Figure 5: Green Chemistry Implementation Strategies

Strategy Implementation Time Resources Required Associated Risks

Short Term 6 months to 18 months Low Low

Medium Term 18 months to 3 years Medium Medium

Long term 3 years to 10 Years High High

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Knowledge and Strategy Partner

12 01

Knowledge and Strategy PartnerKnowledge and Strategy Partner

6.1 Green Chemistry

Green chemistry is a philosophy of chemical research and engineering that

involves the design of products and processes that minimize the use and

generation of hazardous chemicals. Unlike the environmental chemistry

which focuses on the study of pollutant chemicals and their effect on nature,

green chemistry aims to reduce the pollution at the source. Green chemistry

involves waste minimization at source, use of catalysts in place of reagents,

use of non-toxic reagents, use of renewable resources, improved atom

efficiency and use of Solvent Free or Recyclable Environmentally Benign

Solvent systems.

Implementation of Green Chemistry practices can help the companies in

achieving material and energy efficiency and reduce the hazards involved in

the entire life cycle of the product.

6.2 Green Chemistry Implementation Strategies

Based on the implementation time, resources involved and associated

implementation risks green chemistry strategies can be categorized into

three types: Short term implementation strategies, medium term

implementation strategies and long term implementation strategies. (Ref:

Figure 5)

Green Chemistry in Crop Protection Chemicals Sector6

13

6.3 Short Term Strategies

On a short term basis the industry should look for possible ways to optimize

their current business practices by developing zero discharge solution,

developing means for reducing the COD (Chemical Oxygen Demand) levels

in the wastewater generated and by developing collaborative platforms so as

to learn from the best practices employed in other companies.

The conventional wastewater treatment processes do not remove salinity in

the treated effluent. Discharging the saline waste water pollutes the ground

and surface waters, also impacting the nutrient value of the soil. In order to

overcome the scarcity of water, impact of saline water discharge and

regulatory pressures associated, zero liquid discharge solutions have been

developed which mean zero discharge of wastewater from industries. It

involves advanced wastewater treatment technologies to recycle recover and

re-use the 'treated' wastewater, ensuring bare minimum discharge of

wastewater to the environment. Apart from reducing the environmental

waste discharge, it helps in 90-95% of water recovery and recovery of by-

products from the salts resulting in operational savings.

Industrial wastewater containing organic and inorganic impurities are toxic

and can't undergo direct biological treatment. The industrial wastewater

resulting from the spills, leaks, product washings and effluents discharged

from the chemical plants differ in characteristics amongst themselves and

from the domestic wastewater. Some of the key waste generating sectors are

pharma, Crop Protection Chemicals and pigment industries. In order to meet

6.3.1. Zero Discharge Solution

6.3.2. COD Reduction

Figure 5: Green Chemistry Implementation Strategies

Strategy Implementation Time Resources Required Associated Risks

Short Term 6 months to 18 months Low Low

Medium Term 18 months to 3 years Medium Medium

Long term 3 years to 10 Years High High

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Knowledge and Strategy PartnerKnowledge and Strategy Partner

14

the specifications for discharge or for recycling the industrial effluents have

to be treated. Various methods have been developed to reduce the COD of

the industrial waste water. COD can be reduced by using H2O2, subcritical

water oxidation, thermal-liquid phase oxidation, isolated bacteria and using

adsorbents like activated carbon, fly ash and neem leaves.

Instead of competing with each other, by building up collaborative platforms

across various levels of management companies can learn from the best

practices prevalent in other companies. Such platforms build trust amongst

the companies resulting in sharing of knowledge and expertise which is

important for dissemination of green chemistry practices resulting in

development of greener processes and products cost efficiently. The

collaborative platforms can be developed across various dimensions like

procurement, marketing and distribution, energy, water, waste disposal and

safety. For instance, development of a collaborative platform by the top six

Indian pharmaceutical companies has helped them to share the best

practices amongst themselves. This has resulted in energy cost reduction of

Rs 10-15 Crore and reduction in water consumption by 200 million liters

within one year of establishment. It has also helped the companies in

enhancing their solvent recovery by 4-5%.

On a medium term basis companies should look for how they can change

their chemistry so that they can maximize the efficiency of their consumption

of solvents. This helps companies to reduce the amount of wastes generated,

improve their material efficiency and reduce the costs involved. Companies

can also explore new greener aspects of chemistry and chemical engineering

like microwave chemistry.

The chemical industry heavily uses large quantities of organic solvents in a

great number of manufacturing steps which include chemical synthesis,

fermentation, extraction, formulation and finishing of products. They are

used as reaction media and for products extraction in the pharmaceutical,

6.3.3. Collaborative Platforms

6.4.1 Solvent recovery practice

6.4 Medium Term S.trategies

15

Crop Protection Chemicals, specialty chemicals and fragrance industries.

Except few cases, the solvents used do not participate in the reaction. At the

end of the process, the solvents are usually contaminated and cannot be

reused. Hence the practice is to dispose them and use fresh solvents. It has

been found that solvents have been responsible for 40% of VOC emissions in

Europe and their disposal costs go up to 10% of the purchase price. This

makes solvent recovery an important means to implement green and

sustainable chemistry. Some of the commonly used solvents are NMP,

isophorone and cyclohexanone.

Traditionally the solvents used are derived from crude oil and result in high

levels of toxic emissions in the atmosphere. The increasing usage of the

solvents along with strict environmental regulations to lower the VOC

(Volatile Organic Compounds) has resulted in growth of biosolvents (greener

alternatives). According to a research the green solvent market is expected to

reach USD 6.5 billion by 2018 at a CAGR of almost 8.5%.

The green solvent market is segmented based on applications such as

adhesives, cosmetics, pharmaceuticals, Crop Protection Chemicals, paints

and coatings. Depending on product type, green solvents are categorized as

soy methyl esters, lactate esters, derived from soyabean oil, a biodegradable

alternative can replace almost 500 pounds of traditional chlorinated and

petroleum solvents. Ethyl lactate, another green solvent has replaced

solvents like NMP, toluene, acetone and xylene. The greener alternatives are

biodegradable, easy to recycle, result in reduced harmful emissions and are

non-corrosive and non-carcinogenic

Biocatalysis is the use of isolated enzymes or whole cells for synthetic

transformation. Enzymes are catalytic proteins that catalyze reactions in the

living organisms. Enzymes are highly efficient catalysts resulting in rate

enhancement of reaction to about 106 to 1017. Enzymes have a very good

selectivity i.e. ability to work with a single compound resulting in high yield of

a specific product. Compared to chemical catalysts biocatalysts require

milder reaction conditions (pH range of 5-8 and temperature range of 20-

40oC). Biocatalysts are more efficient (lower concentration of enzymes are

6.4.2 Alternate Solvents

6.4.3 Biocatalysts

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Knowledge and Strategy PartnerKnowledge and Strategy Partner

14

the specifications for discharge or for recycling the industrial effluents have

to be treated. Various methods have been developed to reduce the COD of

the industrial waste water. COD can be reduced by using H2O2, subcritical

water oxidation, thermal-liquid phase oxidation, isolated bacteria and using

adsorbents like activated carbon, fly ash and neem leaves.

Instead of competing with each other, by building up collaborative platforms

across various levels of management companies can learn from the best

practices prevalent in other companies. Such platforms build trust amongst

the companies resulting in sharing of knowledge and expertise which is

important for dissemination of green chemistry practices resulting in

development of greener processes and products cost efficiently. The

collaborative platforms can be developed across various dimensions like

procurement, marketing and distribution, energy, water, waste disposal and

safety. For instance, development of a collaborative platform by the top six

Indian pharmaceutical companies has helped them to share the best

practices amongst themselves. This has resulted in energy cost reduction of

Rs 10-15 Crore and reduction in water consumption by 200 million liters

within one year of establishment. It has also helped the companies in

enhancing their solvent recovery by 4-5%.

On a medium term basis companies should look for how they can change

their chemistry so that they can maximize the efficiency of their consumption

of solvents. This helps companies to reduce the amount of wastes generated,

improve their material efficiency and reduce the costs involved. Companies

can also explore new greener aspects of chemistry and chemical engineering

like microwave chemistry.

The chemical industry heavily uses large quantities of organic solvents in a

great number of manufacturing steps which include chemical synthesis,

fermentation, extraction, formulation and finishing of products. They are

used as reaction media and for products extraction in the pharmaceutical,

6.3.3. Collaborative Platforms

6.4.1 Solvent recovery practice

6.4 Medium Term S.trategies

15

Crop Protection Chemicals, specialty chemicals and fragrance industries.

Except few cases, the solvents used do not participate in the reaction. At the

end of the process, the solvents are usually contaminated and cannot be

reused. Hence the practice is to dispose them and use fresh solvents. It has

been found that solvents have been responsible for 40% of VOC emissions in

Europe and their disposal costs go up to 10% of the purchase price. This

makes solvent recovery an important means to implement green and

sustainable chemistry. Some of the commonly used solvents are NMP,

isophorone and cyclohexanone.

Traditionally the solvents used are derived from crude oil and result in high

levels of toxic emissions in the atmosphere. The increasing usage of the

solvents along with strict environmental regulations to lower the VOC

(Volatile Organic Compounds) has resulted in growth of biosolvents (greener

alternatives). According to a research the green solvent market is expected to

reach USD 6.5 billion by 2018 at a CAGR of almost 8.5%.

The green solvent market is segmented based on applications such as

adhesives, cosmetics, pharmaceuticals, Crop Protection Chemicals, paints

and coatings. Depending on product type, green solvents are categorized as

soy methyl esters, lactate esters, derived from soyabean oil, a biodegradable

alternative can replace almost 500 pounds of traditional chlorinated and

petroleum solvents. Ethyl lactate, another green solvent has replaced

solvents like NMP, toluene, acetone and xylene. The greener alternatives are

biodegradable, easy to recycle, result in reduced harmful emissions and are

non-corrosive and non-carcinogenic

Biocatalysis is the use of isolated enzymes or whole cells for synthetic

transformation. Enzymes are catalytic proteins that catalyze reactions in the

living organisms. Enzymes are highly efficient catalysts resulting in rate

enhancement of reaction to about 106 to 1017. Enzymes have a very good

selectivity i.e. ability to work with a single compound resulting in high yield of

a specific product. Compared to chemical catalysts biocatalysts require

milder reaction conditions (pH range of 5-8 and temperature range of 20-

40oC). Biocatalysts are more efficient (lower concentration of enzymes are

6.4.2 Alternate Solvents

6.4.3 Biocatalysts

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Knowledge and Strategy Partner

16

Knowledge and Strategy Partner

needed), can be easily modified to increase their selectivity, stability and

activity. Traditionally biocatalysts have been used in production of alcohol

and cheese, however recently they are being increasingly used in the

pharmaceutical, agrochemical and food industries. Apart from being

environment friendly and biodegradable, the use of biocatalysts can help the

chemical companies to improve their yield and reduce the wastes generated.

Microwave chemistry involves use of microwave radiations to carry out

chemical reactions. Microwaves act as high frequency electric fields and heat

any material containing mobile electric charges such as polar molecules in a

solvent or conducting ions in a solid. This involves agitation of polar

molecules or ions that oscillate under the effect of an oscillating electric or

magnetic field. Under the presence of an oscillating field, the particles try to

orient themselves or be in phase with the field. But due to inter-particle

interaction and electrical resistance the motion of these particles gets

restricted resulting in random motion generating heat. Different materials

have different response to microwaves, some are transparent to them (e.g.

sulphur), some reflect them (e.g. copper) and some absorb them (e.g. water).

Microwave chemistry is used in organic synthesis at elevated pressures or in

dry media, synthesis of organometallic and coordination compounds,

synthesis of ceramic products and have applications in polymer chemistry

(Ref: Figure 6). Microwave chemistry finds applications in pharmaceutical

industry, agrochemical industry, polymer synthesis, chemical synthesis and

extraction, nanoparticle synthesis and biochemical and drying activities.

6.4.4 Microwave Chemistry

17

Figure 6: Advantages of Microwave Chemistry

6.5 Long Term Strategies

In a long term companies should look for developing new green routes of

chemical synthesis. This involves shifting dependence form fossil fuels to

renewable resources, and biomass as feedstock to develop biopesticides. The

Indian companies should also invest in R&D activities so as to greener

synthesis routes and products.

Bio-pesticides, also called as biological pesticides provide an ecofriendly

alternative to the traditional pesticides. These pesticides are based on

pathogenic microorganisms specific to a target pest, thereby providing an

ecologically sound and effective solution to pest problems. The commonly

used bio-pesticides are living organisms, which are pathogenic for the pest of

interest like biofungicides (Trichoderma), bioherbicides (Phytopthora) and

bioinsecticides (Bacillus thuringiensis). Globally, there are 175 registered

biopesticide active-ingredients and 700 products available in the market. The

global market for biopesticides is currently valued at USD 3.6 Bn in FY14. As

compared to the industry growth rate of 5.5% CAGR, the bio-pesticide

market is expected to grow at a CAGR of 13.9% to reach USD 6.9 Bn by FY19.

6.5.1 Bio-pesticides

Figure 7 : Global bio-pesticides market

North America consumes the largest share of global biopesticides (40%)

followed by Europe (20%). Asia Pacific and Europe are the fastest growing

3.6

6.9

FY14 FY19

13.9%

Source: Industry reports, Analysis by Tata Strategic

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Knowledge and Strategy Partner

16

Knowledge and Strategy Partner

needed), can be easily modified to increase their selectivity, stability and

activity. Traditionally biocatalysts have been used in production of alcohol

and cheese, however recently they are being increasingly used in the

pharmaceutical, agrochemical and food industries. Apart from being

environment friendly and biodegradable, the use of biocatalysts can help the

chemical companies to improve their yield and reduce the wastes generated.

Microwave chemistry involves use of microwave radiations to carry out

chemical reactions. Microwaves act as high frequency electric fields and heat

any material containing mobile electric charges such as polar molecules in a

solvent or conducting ions in a solid. This involves agitation of polar

molecules or ions that oscillate under the effect of an oscillating electric or

magnetic field. Under the presence of an oscillating field, the particles try to

orient themselves or be in phase with the field. But due to inter-particle

interaction and electrical resistance the motion of these particles gets

restricted resulting in random motion generating heat. Different materials

have different response to microwaves, some are transparent to them (e.g.

sulphur), some reflect them (e.g. copper) and some absorb them (e.g. water).

Microwave chemistry is used in organic synthesis at elevated pressures or in

dry media, synthesis of organometallic and coordination compounds,

synthesis of ceramic products and have applications in polymer chemistry

(Ref: Figure 6). Microwave chemistry finds applications in pharmaceutical

industry, agrochemical industry, polymer synthesis, chemical synthesis and

extraction, nanoparticle synthesis and biochemical and drying activities.

6.4.4 Microwave Chemistry

17

Figure 6: Advantages of Microwave Chemistry

6.5 Long Term Strategies

In a long term companies should look for developing new green routes of

chemical synthesis. This involves shifting dependence form fossil fuels to

renewable resources, and biomass as feedstock to develop biopesticides. The

Indian companies should also invest in R&D activities so as to greener

synthesis routes and products.

Bio-pesticides, also called as biological pesticides provide an ecofriendly

alternative to the traditional pesticides. These pesticides are based on

pathogenic microorganisms specific to a target pest, thereby providing an

ecologically sound and effective solution to pest problems. The commonly

used bio-pesticides are living organisms, which are pathogenic for the pest of

interest like biofungicides (Trichoderma), bioherbicides (Phytopthora) and

bioinsecticides (Bacillus thuringiensis). Globally, there are 175 registered

biopesticide active-ingredients and 700 products available in the market. The

global market for biopesticides is currently valued at USD 3.6 Bn in FY14. As

compared to the industry growth rate of 5.5% CAGR, the bio-pesticide

market is expected to grow at a CAGR of 13.9% to reach USD 6.9 Bn by FY19.

6.5.1 Bio-pesticides

Figure 7 : Global bio-pesticides market

North America consumes the largest share of global biopesticides (40%)

followed by Europe (20%). Asia Pacific and Europe are the fastest growing

3.6

6.9

FY14 FY19

13.9%

Source: Industry reports, Analysis by Tata Strategic

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Knowledge and Strategy Partner

18

Knowledge and Strategy Partner

19

markets and are expected to grow at CAGR of 14.2% and 16% respectively.

The Indian market currently stands at 0.16 USD billion and is expected to

grow to 0.35 USD billion by 2018 at a CAGR of 17.3%. Neem based pesticides,

Bacillus thuringiensis, Nuclear Polyhedrosis Virus and Trichoderma are some

of the major biopesticides produced and used in India.

The key growth drivers for the increase in demand of bio-pesticides are:

lIncreasing demand for residue free crop protection products

lGrowth in organic food market

lEasy registrations compared to conventional pesticides

lIncreasing concern about safety and toxicity of traditional pesticides

The key benefits of the bio-pesticides are:

lCost effectiveness: Costlier but reduced number of applications

lLow residual effect and mostly biodegradable

lLow pest resurgence

lTarget specific and less harmful on beneficial pests

It is important for the agrochemical companies to innovate products which

can improve the effectiveness of pesticide usage as well as reduce the

negative impacts on environment. Currently the Indian companies invest 1-

2% of their turnover in R&D as compared to 5-10 % spend by the

multinational companies. It is therefore essential for the Indian companies

should to invest in R&D activities for implementing green practices. Some of

the focus areas can be:

lDeveloping water based formulations

lDeveloping Target specific chemicals instead of broad specific chemicals

6.5.2 Product and Process Innovation

lGreener routes of chemical synthesis

lReduce the number of steps involved in product synthesis

lDevelopment of lower dosage molecules leading to lesser volume

implementation and reduced quantity of active ingredients going in

atmosphere

Industrial ecology is a multi-disciplinary approach that combines different

aspects of engineering, economics, sociology, toxicology and natural

sciences. It is an ecosystem artificially setup in which various stakeholders

(Industries, Government bodies, educational institutes, NGOs and society)

come together and develop a symbiotic system where the entities through

the dependence on outputs and by-products generated by other members

of the ecosystem achieve material and energy efficiency and reduction in

wastes generated.

Apart from depending on other partners for raw materials, companies also

have the opportunity to look for possible ways of converting the wastes

generated from their processes into useful products which can be used for

their own operations. By developing a complete chain of green chemical

processes in different sectors, Industrial ecology helps in establishing a viable

and sustainable looping system.

Industrial ecology helps in reducing raw material and energy consumption,

reduced external dependence on feedstock and utilities, reduces the toxic

waste generation resulting in cost savings and helps in improving the image

of agrochemical companies.

6.5.3 Industrial Ecology

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Knowledge and Strategy Partner

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markets and are expected to grow at CAGR of 14.2% and 16% respectively.

The Indian market currently stands at 0.16 USD billion and is expected to

grow to 0.35 USD billion by 2018 at a CAGR of 17.3%. Neem based pesticides,

Bacillus thuringiensis, Nuclear Polyhedrosis Virus and Trichoderma are some

of the major biopesticides produced and used in India.

The key growth drivers for the increase in demand of bio-pesticides are:

lIncreasing demand for residue free crop protection products

lGrowth in organic food market

lEasy registrations compared to conventional pesticides

lIncreasing concern about safety and toxicity of traditional pesticides

The key benefits of the bio-pesticides are:

lCost effectiveness: Costlier but reduced number of applications

lLow residual effect and mostly biodegradable

lLow pest resurgence

lTarget specific and less harmful on beneficial pests

It is important for the agrochemical companies to innovate products which

can improve the effectiveness of pesticide usage as well as reduce the

negative impacts on environment. Currently the Indian companies invest 1-

2% of their turnover in R&D as compared to 5-10 % spend by the

multinational companies. It is therefore essential for the Indian companies

should to invest in R&D activities for implementing green practices. Some of

the focus areas can be:

lDeveloping water based formulations

lDeveloping Target specific chemicals instead of broad specific chemicals

6.5.2 Product and Process Innovation

lGreener routes of chemical synthesis

lReduce the number of steps involved in product synthesis

lDevelopment of lower dosage molecules leading to lesser volume

implementation and reduced quantity of active ingredients going in

atmosphere

Industrial ecology is a multi-disciplinary approach that combines different

aspects of engineering, economics, sociology, toxicology and natural

sciences. It is an ecosystem artificially setup in which various stakeholders

(Industries, Government bodies, educational institutes, NGOs and society)

come together and develop a symbiotic system where the entities through

the dependence on outputs and by-products generated by other members

of the ecosystem achieve material and energy efficiency and reduction in

wastes generated.

Apart from depending on other partners for raw materials, companies also

have the opportunity to look for possible ways of converting the wastes

generated from their processes into useful products which can be used for

their own operations. By developing a complete chain of green chemical

processes in different sectors, Industrial ecology helps in establishing a viable

and sustainable looping system.

Industrial ecology helps in reducing raw material and energy consumption,

reduced external dependence on feedstock and utilities, reduces the toxic

waste generation resulting in cost savings and helps in improving the image

of agrochemical companies.

6.5.3 Industrial Ecology

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21

Judicious use of Crop Protection Chemicals 7

Pesticides are substances that act as medicine for agriculture, hence

they need to be used after proper selection and advice. . If not

properly used, applied and used, they could result in less efficient or

no results in saving the crop from the targeted pest / weed etc. and could also

cause harmful effects to water and soil. Therefore, it is essential that crop

protection products are used judiciously in terms of right product, correct

dosage and application methodology.

Besides using pesticides, other methodologies should also be adopted in

order to produce crops in a sustainable manner. Select methodologies which

can be adopted are highlighted below -

a) Integrated Pest Management- Integrated Pest Management, or IPM, is a

pest management system that monitors and identifies pests before they

become a threat; intercropping and crop rotations are done to reduce

buildup of pests and thus preventing pests before they reach damaging

levels. Pesticides are generally used sparingly and only when other methods

fail.

b) Mulching, groundcover, and manual control- Mulching is the process of

spreading organic or mineral material to manually control the growth of

weeds. Groundcovers are mostly plants that are grown close to the ground

below the main crop in order to control weeds. Weeds and insects can also be

prevented by manual control, though it is a highly labor-intensive process.

c) Release of beneficial insects and organisms- There are a number of

beneficial insects and organisms which destroy harmful pests.

Some of the other modern technologies which can help in optimizing usage

of pesticides are the use of injection syringes, GPS and weed-eye technology.

Compared to conventional sprayers, the injection syringes help the farmers

to select different mixture of pesticides for different fields. The injection

syringes also help the farmer to continuously change the concentration of

single pesticide. This helps in reducing the pesticide use.

The GPS technology can reduce the pesticide consumption by up to 10% by

preventing double treatment, mapping of pest populations and by helping in

calculating the amount of pesticide required and time of application. The GPS

technology also helps in selective spraying of pesticides. Similarly, the

weed-eye technology is a recognition technology which uses infrared light to

distinguish between the different weed species and accordingly target the

desired species.

Along with the government the manufacturers must continuously advise the

farming community to make safe and judicious use of pesticides. It should be

emphasized that farmers should always adhere to the set of guidelines

recommended by the scientists and the experts and should only buy

pesticides of well established companies and always take receipts of their

purchases

In developed countries the usage of pesticides is 20 times more than India;

their crop yields are much higher than ours. We can also achieve the same.

For this, we must take steps to spread awareness on the judicious use of

pesticides by organizing educational programmes, seminars, publicity

campaigns, radio and TV talk and kisan melas from time to time.

We must realize that pesticides are as important as any other ingredient for

the crop production in this country. Pesticides like drugs are beneficial to man

when properly used and therefore should not be misused. It is entirely

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21

Judicious use of Crop Protection Chemicals 7

Pesticides are substances that act as medicine for agriculture, hence

they need to be used after proper selection and advice. . If not

properly used, applied and used, they could result in less efficient or

no results in saving the crop from the targeted pest / weed etc. and could also

cause harmful effects to water and soil. Therefore, it is essential that crop

protection products are used judiciously in terms of right product, correct

dosage and application methodology.

Besides using pesticides, other methodologies should also be adopted in

order to produce crops in a sustainable manner. Select methodologies which

can be adopted are highlighted below -

a) Integrated Pest Management- Integrated Pest Management, or IPM, is a

pest management system that monitors and identifies pests before they

become a threat; intercropping and crop rotations are done to reduce

buildup of pests and thus preventing pests before they reach damaging

levels. Pesticides are generally used sparingly and only when other methods

fail.

b) Mulching, groundcover, and manual control- Mulching is the process of

spreading organic or mineral material to manually control the growth of

weeds. Groundcovers are mostly plants that are grown close to the ground

below the main crop in order to control weeds. Weeds and insects can also be

prevented by manual control, though it is a highly labor-intensive process.

c) Release of beneficial insects and organisms- There are a number of

beneficial insects and organisms which destroy harmful pests.

Some of the other modern technologies which can help in optimizing usage

of pesticides are the use of injection syringes, GPS and weed-eye technology.

Compared to conventional sprayers, the injection syringes help the farmers

to select different mixture of pesticides for different fields. The injection

syringes also help the farmer to continuously change the concentration of

single pesticide. This helps in reducing the pesticide use.

The GPS technology can reduce the pesticide consumption by up to 10% by

preventing double treatment, mapping of pest populations and by helping in

calculating the amount of pesticide required and time of application. The GPS

technology also helps in selective spraying of pesticides. Similarly, the

weed-eye technology is a recognition technology which uses infrared light to

distinguish between the different weed species and accordingly target the

desired species.

Along with the government the manufacturers must continuously advise the

farming community to make safe and judicious use of pesticides. It should be

emphasized that farmers should always adhere to the set of guidelines

recommended by the scientists and the experts and should only buy

pesticides of well established companies and always take receipts of their

purchases

In developed countries the usage of pesticides is 20 times more than India;

their crop yields are much higher than ours. We can also achieve the same.

For this, we must take steps to spread awareness on the judicious use of

pesticides by organizing educational programmes, seminars, publicity

campaigns, radio and TV talk and kisan melas from time to time.

We must realize that pesticides are as important as any other ingredient for

the crop production in this country. Pesticides like drugs are beneficial to man

when properly used and therefore should not be misused. It is entirely

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Knowledge and Strategy Partner

23

possible for a user to handle pesticides safely with no obvious ill-effects to

himself or his environment. Safe handling of pesticides by the user may be

dealt with under the following precautionary measures:

- Before making a selection, the pest problem should be identified

- Select a pesticide that would control the pest with minimum effect on

other organisms

- The pesticide should be one approved, registered and recommended

- Only the required quantity of pesticide should be bought and storage

should be avoided

- Exact dosage as prescribed should be used

- The dilution ratios should not be altered

- Pesticide should be applied exactly as described

- No experimentation should be done on farm by end-users out of

curiosity

- Correct spraying systems should only be used

- Unused pesticide water should not be drained or mixed with fresh water.

It should be kept separately and used as soon as possible

- Proper personal protective equipment (PPE) such as gloves, masks etc.

should be used while handling pesticides

- Any spillage of pesticides should be cleaned properly and immediately

Pesticide Selection

Dosage and Application Methodology

Minimizing contact with non-target species

The Way Ahead8

For a sustainable growth it is imperative for crop protection chemicals

manufacturers to adopt green chemistry processes, develop new

products which are nearly 100% green and increase their focus on

educating and training the farmers for proper usage of Crop Protection

Chemicals.

Focus on Green Chemistry will help the companies to design new products

and processes with sustainability as the core principle. Over the long term,

this will help the companies to differentiate themselves and build

competitive advantage.

Government should look to curb the menace of spurious pesticides.

Recommendations on the same have been given in detail in recent TATA

Strategic Management Group's report on spurious pesticides (available

through FICCI).

However, the industry cannot implement the green chemistry practices in

isolation. It is imperative to build a collaborative ecosystem in which the

academia, industry, government and regulatory bodies come together and

create opportunities for the industry, academia and the Entrepreneurs to test,

scale-up and commercialize their ideas in the domain of green chemistry

practices. Ideas or concepts with potential should be nurtured and adequate

support should be provided for scale-up and commercialization. This would

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22

Knowledge and Strategy Partner

23

possible for a user to handle pesticides safely with no obvious ill-effects to

himself or his environment. Safe handling of pesticides by the user may be

dealt with under the following precautionary measures:

- Before making a selection, the pest problem should be identified

- Select a pesticide that would control the pest with minimum effect on

other organisms

- The pesticide should be one approved, registered and recommended

- Only the required quantity of pesticide should be bought and storage

should be avoided

- Exact dosage as prescribed should be used

- The dilution ratios should not be altered

- Pesticide should be applied exactly as described

- No experimentation should be done on farm by end-users out of

curiosity

- Correct spraying systems should only be used

- Unused pesticide water should not be drained or mixed with fresh water.

It should be kept separately and used as soon as possible

- Proper personal protective equipment (PPE) such as gloves, masks etc.

should be used while handling pesticides

- Any spillage of pesticides should be cleaned properly and immediately

Pesticide Selection

Dosage and Application Methodology

Minimizing contact with non-target species

The Way Ahead8

For a sustainable growth it is imperative for crop protection chemicals

manufacturers to adopt green chemistry processes, develop new

products which are nearly 100% green and increase their focus on

educating and training the farmers for proper usage of Crop Protection

Chemicals.

Focus on Green Chemistry will help the companies to design new products

and processes with sustainability as the core principle. Over the long term,

this will help the companies to differentiate themselves and build

competitive advantage.

Government should look to curb the menace of spurious pesticides.

Recommendations on the same have been given in detail in recent TATA

Strategic Management Group's report on spurious pesticides (available

through FICCI).

However, the industry cannot implement the green chemistry practices in

isolation. It is imperative to build a collaborative ecosystem in which the

academia, industry, government and regulatory bodies come together and

create opportunities for the industry, academia and the Entrepreneurs to test,

scale-up and commercialize their ideas in the domain of green chemistry

practices. Ideas or concepts with potential should be nurtured and adequate

support should be provided for scale-up and commercialization. This would

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24

Knowledge and Strategy Partner

encourage creation of inventions and innovations in the field of green

chemistry. (Ref: Figure 8)

The companies should also perform a process and environmental impact

audit of their existing products. This would help the companies to perform an

environmental audit of their current products and processes, evaluate the

potential impacts of their products, and take actions to develop greener

products and processes.

Adoption of green chemistry practices, green products and embracing

farmers to promote judicious usage of crop protection products will be an

appropriate way to develop a long term sustainable business model in Crop

Protection Chemicals.

With Government's current campaign on 'Make in India' which has a special

focus on the chemical industry and aims to turn the country into a global

manufacturing hub, good growth in the agrochemical sector can be achieved

if better infrastructure and favorable policies are provided.

25

4 Application of Make in India Concept in Crop Protection Chemicals Sector9

lIndia's Global rank is 4th as a supplier of Crop Protection Chemicals in the

global market , after USA, Japan and China.

lTotal Production around 4 billion dollars mainly generics 70 - 90 % out of

which 50% is exported. Expected to reach 6.8 billion dollar by 2017.

lCrop losses 20 - 30 % may be more than Rs. 2.0 lac Crores. 37th standing

Committee on chemicals and petrochemicals in the year 2002 estimated

Rs. 90000 Crores loss due to pests , disease etc.

lIndia is a net exporter of pesticides which is growing every year and our

exports include developed countries like US, UK, France, Netherland ,

South Africa etc.

lIndian Pesticides Quality is well Established and accepted in international

market and no complaint of quality or sample failure.

lProvide Facilities

(i) Create pesticides production hubs;

(ii) Common Effluent Treatment Plants ;

(iii) Faster Environment and pollution Clearance.

(iv) CIB Registration to be expedited. Our Country 240, Europe 600, USA

755 , Pakistan 495.

(v) Excise Duty to be re - looked.

(vi) Labour Law Reforms.

(vii) Reduce No. of Inspector Dept.

lSupport R & D as at present there is no original research in the country as

it costs around 10years time and 200 million dollars investment on a

product.

Figure 8: The Way Ahead

Green Chemistry -

The Way Ahead

1

4 2

3

Academia support

Industry initiatives

Govt./Regulatory bodies support

Role of end users

lPerform process and environmental impact audit of existing

products /processes

lInvest in R&D activities

lRigorous support from top management

lOrganize industrial roundtables

lPromote technopreneurs through angel investments

lBuild green chemistry related academic programs

lCollaborate with industry for R&D activities

lPromote green chemistry through academic events

lSupport technopreneurs in testing and scaling up

green chemistry ideas

lDevelop green chemistry rating system to

evaluate industry performance

lPromote green chemistry initiatives

through subsidies and investment support

to MSMEs and technopreneurs

lFast track regulations and unique clear

guidelines for green products

lPromote green chemistry as means of CSR

lDemand for green products

lFocus on overall benefits, not just costs alone

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24

Knowledge and Strategy Partner

encourage creation of inventions and innovations in the field of green

chemistry. (Ref: Figure 8)

The companies should also perform a process and environmental impact

audit of their existing products. This would help the companies to perform an

environmental audit of their current products and processes, evaluate the

potential impacts of their products, and take actions to develop greener

products and processes.

Adoption of green chemistry practices, green products and embracing

farmers to promote judicious usage of crop protection products will be an

appropriate way to develop a long term sustainable business model in Crop

Protection Chemicals.

With Government's current campaign on 'Make in India' which has a special

focus on the chemical industry and aims to turn the country into a global

manufacturing hub, good growth in the agrochemical sector can be achieved

if better infrastructure and favorable policies are provided.

25

4 Application of Make in India Concept in Crop Protection Chemicals Sector9

lIndia's Global rank is 4th as a supplier of Crop Protection Chemicals in the

global market , after USA, Japan and China.

lTotal Production around 4 billion dollars mainly generics 70 - 90 % out of

which 50% is exported. Expected to reach 6.8 billion dollar by 2017.

lCrop losses 20 - 30 % may be more than Rs. 2.0 lac Crores. 37th standing

Committee on chemicals and petrochemicals in the year 2002 estimated

Rs. 90000 Crores loss due to pests , disease etc.

lIndia is a net exporter of pesticides which is growing every year and our

exports include developed countries like US, UK, France, Netherland ,

South Africa etc.

lIndian Pesticides Quality is well Established and accepted in international

market and no complaint of quality or sample failure.

lProvide Facilities

(i) Create pesticides production hubs;

(ii) Common Effluent Treatment Plants ;

(iii) Faster Environment and pollution Clearance.

(iv) CIB Registration to be expedited. Our Country 240, Europe 600, USA

755 , Pakistan 495.

(v) Excise Duty to be re - looked.

(vi) Labour Law Reforms.

(vii) Reduce No. of Inspector Dept.

lSupport R & D as at present there is no original research in the country as

it costs around 10years time and 200 million dollars investment on a

product.

Figure 8: The Way Ahead

Green Chemistry -

The Way Ahead

1

4 2

3

Academia support

Industry initiatives

Govt./Regulatory bodies support

Role of end users

lPerform process and environmental impact audit of existing

products /processes

lInvest in R&D activities

lRigorous support from top management

lOrganize industrial roundtables

lPromote technopreneurs through angel investments

lBuild green chemistry related academic programs

lCollaborate with industry for R&D activities

lPromote green chemistry through academic events

lSupport technopreneurs in testing and scaling up

green chemistry ideas

lDevelop green chemistry rating system to

evaluate industry performance

lPromote green chemistry initiatives

through subsidies and investment support

to MSMEs and technopreneurs

lFast track regulations and unique clear

guidelines for green products

lPromote green chemistry as means of CSR

lDemand for green products

lFocus on overall benefits, not just costs alone

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26

lGlobally more than 9 billion products will go off patent between 2010- 20

. Big Opportunity . 20 % of world market.

lIndia's pesticides consumption is very low i.e. 580 grams per hectare in

comparison to 11 KG of japan showing huge potential. India Consumes

approx.. 2% Pesticides of the world while Agriculture Area is 16% approx.

lImage of the industry to be improved . Although internally we enjoy very

good image but some companies in domestic market face problem of

sample failure in Govt. pesticides testing laboratories which needs

immediate attention.

lLarge scale spiked bio products sold and due to illegal imports published

in international magazines , spoils Country's image while countries like

China & Africa has taken stringent action while in india spiked bio

products has become a cottage industry. APEDA got tested Bio Products

in which chemicals were found . Similarly Dr. Mayee got tested 20

samples out of which in 19 samples chemicals were found.

lWe should respect intellectual Property Rights.

lChina is talking Stringent action and closing the factories which do not

have required infrastructure. In Our Country , there are no trade barriers

and anybody entering the trade without putting proper manufacturing

facilities. Manufacturing licenses should be issued to only those

companies who have proper infrastructure.

lOur extention system is not very effective ;hence farmers and dealers

training should be started . Govt. should support all Agricultural

Universities to start large scale farmers line of MANAGE and all KVKs

should take up large scale farmers training for dealers before issuing

license it should be mandatory to have training.

lSupport Financially to companies doing extension work.

lIndian talent get education in India but works abroad and we should try

to support Indian talent to support Indian industry.

lNegative Propaganda against agro chemicals- we support genuine bio

pesticides but negative propaganda by few vested interests NGOs should

be checked and Govt should Clarify the facts of residue in food products

as per their analysis.

lFor supporting Make in India, we should increase domestic consumption

as well as export and provide required infrastructure for growth of the

Nation.

27

References10

1. Knowledge and Strategy paper for FICCI Crop Protection Chemicals

Conclave 2014 prepared by Tata Strategic

2. "Reengineering Chemistry for better tomorrow", Knowledge paper for

Industrial Green Chemistry 2013 prepared by Tata Strategic

3. Various company websites

4. BCC research report

5. Chemtech Foundation article on pesticide industry

6. Indian Agrochemical Industry report by Sunidhi Institutional Research

7. United Phosphorus Limited Annual Report, FY13

8. Article on growing importance of Crop Protection Chemicals by KPMG

9. R&D Trends for Chemical Crop Protection Products by Phillips McDougall

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26

lGlobally more than 9 billion products will go off patent between 2010- 20

. Big Opportunity . 20 % of world market.

lIndia's pesticides consumption is very low i.e. 580 grams per hectare in

comparison to 11 KG of japan showing huge potential. India Consumes

approx.. 2% Pesticides of the world while Agriculture Area is 16% approx.

lImage of the industry to be improved . Although internally we enjoy very

good image but some companies in domestic market face problem of

sample failure in Govt. pesticides testing laboratories which needs

immediate attention.

lLarge scale spiked bio products sold and due to illegal imports published

in international magazines , spoils Country's image while countries like

China & Africa has taken stringent action while in india spiked bio

products has become a cottage industry. APEDA got tested Bio Products

in which chemicals were found . Similarly Dr. Mayee got tested 20

samples out of which in 19 samples chemicals were found.

lWe should respect intellectual Property Rights.

lChina is talking Stringent action and closing the factories which do not

have required infrastructure. In Our Country , there are no trade barriers

and anybody entering the trade without putting proper manufacturing

facilities. Manufacturing licenses should be issued to only those

companies who have proper infrastructure.

lOur extention system is not very effective ;hence farmers and dealers

training should be started . Govt. should support all Agricultural

Universities to start large scale farmers line of MANAGE and all KVKs

should take up large scale farmers training for dealers before issuing

license it should be mandatory to have training.

lSupport Financially to companies doing extension work.

lIndian talent get education in India but works abroad and we should try

to support Indian talent to support Indian industry.

lNegative Propaganda against agro chemicals- we support genuine bio

pesticides but negative propaganda by few vested interests NGOs should

be checked and Govt should Clarify the facts of residue in food products

as per their analysis.

lFor supporting Make in India, we should increase domestic consumption

as well as export and provide required infrastructure for growth of the

Nation.

27

References10

1. Knowledge and Strategy paper for FICCI Crop Protection Chemicals

Conclave 2014 prepared by Tata Strategic

2. "Reengineering Chemistry for better tomorrow", Knowledge paper for

Industrial Green Chemistry 2013 prepared by Tata Strategic

3. Various company websites

4. BCC research report

5. Chemtech Foundation article on pesticide industry

6. Indian Agrochemical Industry report by Sunidhi Institutional Research

7. United Phosphorus Limited Annual Report, FY13

8. Article on growing importance of Crop Protection Chemicals by KPMG

9. R&D Trends for Chemical Crop Protection Products by Phillips McDougall

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Knowledge and Strategy Partner

28

Founded in 1991 as a division of Tata Industries Ltd, Tata

Strategic Management Group is the largest Indian own

management consulting firm. Tata Strategic has

undertaken 1000+ engagements, with over 300 clients,

across countries and sectors.

It has a growing client base outside India with increasing

presence outside the Tata Group. A majority of revenues

now come from outside the group and more than 20%

revenues from clients outside India.

Tata Strategic offers a comprehensive range of solutions

covering Direction Setting, Driving Strategic Initiatives

and Implementation Support

Manish Panchal

Practice Head - Chemicals, Energy & Logistics

E-mail: [email protected]

Phone: +91 22 6637 6713

Charu Kapoor

Principal - Chemicals

E-mail: [email protected]

Phone: +91 22 6637 6756

Tata Strategic Contacts

About Tata Strategic

Drive Implementation & Change

Results and Benefits*

lRevenue

lMarket Share

lProfit

lLead Time

lCost

lThroughput

lKey Milestones

Our Offerings

lOrganization Structure

lWork force Optimization

lTalent Management

lCulture & HR

Transformation

lGo to Market

lMarket Share Gain

lRural Expansion

lAlternate Channels

lSupply Chain

lDelivery

lCost

Reduction

Organization Sales & Marketing OperationslCompetitive Strategy:

Entry/Growth

lIndia Entry

lM & A support

lAlliances

Develop Solutions for Strategic PrioritiesFormulate Strategy

Report co-authored by Abhiyan Adhikari, Associate Consultant ([email protected])

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Knowledge and Strategy Partner

28

Founded in 1991 as a division of Tata Industries Ltd, Tata

Strategic Management Group is the largest Indian own

management consulting firm. Tata Strategic has

undertaken 1000+ engagements, with over 300 clients,

across countries and sectors.

It has a growing client base outside India with increasing

presence outside the Tata Group. A majority of revenues

now come from outside the group and more than 20%

revenues from clients outside India.

Tata Strategic offers a comprehensive range of solutions

covering Direction Setting, Driving Strategic Initiatives

and Implementation Support

Manish Panchal

Practice Head - Chemicals, Energy & Logistics

E-mail: [email protected]

Phone: +91 22 6637 6713

Charu Kapoor

Principal - Chemicals

E-mail: [email protected]

Phone: +91 22 6637 6756

Tata Strategic Contacts

About Tata Strategic

Drive Implementation & Change

Results and Benefits*

lRevenue

lMarket Share

lProfit

lLead Time

lCost

lThroughput

lKey Milestones

Our Offerings

lOrganization Structure

lWork force Optimization

lTalent Management

lCulture & HR

Transformation

lGo to Market

lMarket Share Gain

lRural Expansion

lAlternate Channels

lSupply Chain

lDelivery

lCost

Reduction

Organization Sales & Marketing OperationslCompetitive Strategy:

Entry/Growth

lIndia Entry

lM & A support

lAlliances

Develop Solutions for Strategic PrioritiesFormulate Strategy

Report co-authored by Abhiyan Adhikari, Associate Consultant ([email protected])

Page 36: Knowledge Paper on Safer and Judicious use of …ficci.in/spdocument/20541/Kowledge-Paper-chem.pdfThe estimates reveal that Crop Protection Chemicals increases crop productivity by

Industry’s Voice for Policy Change

Federation of Indian Chambers of Commerce & Industry

Established in 1927, FICCI is the largest and oldest apex business organisation in India. Its

history is closely interwoven with India's struggle for independence, its industrialization, and

its emergence as one of the most rapidly growing global economies. A non- government, not-

for- profit organisation. FICCI is the voice of India's business and industry.

FICCI draws its membership from the corporate sector, both private and public, including SMEs

and MNCs; FICCI enjoys an indirect membership of over 2, 50,000 companies from various

regional chambers of commerce. For more information please log on to www.ficci.com

Mr. P.S. Singh Head

Chemicals & Petrochemicals Division

FICCI

Federation House,1 Tansen Marg, New Delhi -110001

Tel: +91-11-2331 6540

EPBX: +91-11-23738760-70 (Extn 395)

Email: [email protected]

Charu SmitaAssistant Director

Chemicals and Petrochemicals

FICCI

Industrys Voice for Policy Change

Federation House, Tansen Marg, New Delhi 110 001

T: +91-11-2335 7350, M: +91-9873976208

W: www.ficci.com


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