India Agrochemical Market Outlook to 2030

India Agrochemical Market Overview

• The India agrochemical market is valued at USD 10.5 billion, driven by the growing demand for food security, increasing population, and the rising need to enhance agricultural productivity. The adoption of agrochemicals, such as pesticides, herbicides, and fertilizers, is growing as farmers aim to improve crop yield and meet the rising demand for agricultural produce. Government initiatives supporting the use of advanced farming techniques and sustainable practices have further accelerated the growth of this market.
• The concentration of the agrochemical market is higher in key agricultural states such as Punjab, Haryana, and Uttar Pradesh, where large-scale farming and cash crop cultivation are prevalent. These regions also benefit from advanced irrigation systems, infrastructure, and better access to agrochemical products. In contrast, the market is witnessing moderate growth in states like Bihar and Odisha, where small-scale farming dominates.
• Government policies such as the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Soil Health Card Scheme are supporting farmers in adopting efficient farming practices and utilizing agrochemicals effectively. Furthermore, the Indian governments focus on boosting agricultural exports has led to an increase in the adoption of agrochemicals to meet international quality standards. In 2023, new regulations were introduced to ensure the safety and environmental sustainability of agrochemical usage, pushing companies to invest in R&D for eco-friendly products.

India Agrochemical Market Segmentation

• By Product Type: The market is segmented by product type into insecticides, herbicides, fungicides, bio-pesticides, and fertilizers. Insecticides hold the largest market share, driven by their extensive use in controlling pests and protecting crops. Herbicides are seeing increased adoption due to the rising trend of no-till farming practices, while bio-pesticides are gaining traction as farmers shift toward organic farming and sustainable agriculture. Fertilizers continue to be a significant segment, supporting crop nutrition and soil health.

• By Crop Type: The market is segmented by crop type into cereals & grains, fruits & vegetables, oilseeds, and plantation crops. Cereals & grains dominate the agrochemical demand, particularly for crops such as rice and wheat, which are staple foods in India. The fruits & vegetables segment is also experiencing robust growth, driven by increasing consumer demand for high-quality produce. Oilseeds and plantation crops, like cotton and sugarcane, are key contributors to the market, especially in regions where these crops are widely grown.

India Agrochemical Market Competitive Landscape

The market is highly competitive, with both domestic and international players competing to capture market share through innovation, strategic partnerships, and government collaborations. Leading companies such as UPL Limited, Bayer CropScience, and Syngenta dominate the market with their extensive product portfolios, strong distribution networks, and focus on R&D. Additionally, several regional players are making significant contributions by offering cost-effective and localized solutions tailored to specific agricultural needs.

India Agrochemical Industry Analysis

Growth Drivers

• Rising Food Demand (Population Growth, Productivity Enhancement): India's population is projected to reach 1.43 billion by 2024, increasing the need for higher food production to ensure food security. According to the World Bank, Indias agricultural productivity remains essential, as agriculture employs about 42% of the labour force. To meet the rising food demand, there is a need for agrochemicals to improve crop yields. India produced approximately 332 million tons of food grains in 2023, and this figure must increase substantially to keep up with growing demand and evolving dietary preferences. This demand for productivity enhancement is driving the agrochemical market forward.
• Increasing Government Initiatives: The Indian government continues to support the agrochemical sector through subsidies and export promotion policies. The Ministry of Agriculture and Farmers Welfare allocated USD 15.56 Bn in 2023 for fertilizer subsidies, benefiting agrochemical manufacturers. In addition, the governments efforts to double farmer incomes by promoting exports have led to an increase in agrochemical demand. India exported USD 5.5 billion in 2022-23, up from USD 4.9 billion in the previous fiscal year 2021-22, with plans to expand this further under its Agricultural Export Policy, which targets new global markets for agrochemical products.
• Adoption of Advanced Farming Techniques: Indias push toward advanced farming techniques, including precision agriculture and mechanization, is expanding the agrochemical market. The country saw over 3 million precision farming installations by 2023, contributing to optimized agrochemical use in farming. Mechanization has grown in key agricultural regions, with a substantial portion of Indian farmland now utilizing modern equipment. The adoption of such technologies reduces waste and improves crop yields, making agrochemicals critical for precision dosing and tailored crop protection strategies.

Market Challenges

• Environmental Concerns (Soil Degradation, Water Contamination): The excessive use of agrochemicals in India has led to significant environmental issues, particularly soil degradation and water contamination. Chemical overuse depletes soil health, reducing its long-term productivity and posing risks to future agricultural output. Additionally, agrochemical runoff into water bodies causes widespread contamination, affecting both human health and biodiversity. These environmental challenges highlight the need for stricter regulations and sustainable farming practices to mitigate the impact of agrochemicals on the ecosystem.
• High Cost of Advanced Agrochemicals : Advanced agrochemicals, while beneficial for crop productivity, often come with high costs that small farmers find difficult to afford. A significant portion of Indias farming community consists of small-scale farmers, who typically operate on limited land and have restricted financial resources. The rising prices of modern agrochemical formulations due to inflation and production costs create a barrier to adoption, making the case for more affordable solutions or increased government support in the form of subsidies.

India Agrochemical Market Future Outlook

The India agrochemical market is expected to witness strong growth through 2028, driven by government support, technological advancements, and increasing demand for food security. The adoption of sustainable and eco-friendly agrochemical products is likely to accelerate, particularly as the government continues to implement policies promoting organic farming and precision agriculture.

Future Market Opportunities

• Growing Demand for Organic Farming: The shift toward organic farming in India presents significant opportunities for the agrochemical market, particularly for bio-pesticides and eco-friendly solutions. With the organic food market valued growing rapidly at a steady pace, bio-pesticides are becoming integral to organic farming practices. As mentioned earlier, nearly 2 million hectares of land are under organic cultivation, which requires sustainable agrochemical inputs to ensure productivity without compromising soil health. This rising demand opens a promising avenue for eco-friendly agrochemical innovations.
• Expansion in Emerging Agricultural States (Northeast, Central India): The Northeastern and Central states of India offer untapped potential for agrochemical market expansion. Regions like Assam and Madhya Pradesh have seen significant agricultural growth, with Assams agricultural output increasing by over 6 million tons in 2022, according to government data. Similarly, Madhya Pradeshs diversification into horticulture and cash crops drives demand for specialized agrochemicals. Government schemes aimed at boosting agricultural development in these states, such as Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), provide opportunities for agrochemical manufacturers to capture new market share.