Agrochemicals Market in India 2024-2028

Agrochemicals are utilized to improve soil nutrient levels in various agricultural practices, such as gardening, dairy, poultry production, crop rotation, and commercial planting. These substances, which encompass fungicides, pesticides, insecticides, and natural herbicides, may be combined with synthetic fertilizers, hormones, or other artificial growth agents.

Market insights:

In FY2023, agrochemical consumption in India reached 46,781.65 MT and is projected to grow to 63,451.24 MT by FY2028, reflecting a compound annual growth rate (CAGR) of 7.15% during the FY2024-FY2028e period. Despite challenges such as elevated raw material costs and inventory build-up affecting the market in FY2023, sustained domestic demand is expected throughout the forecast period. This demand is primarily driven by the imperative to improve yields per hectare to support the growing population, fostering continued agrochemical consumption in the country. Notably, farmers are increasing investments in agrochemical seed treatments to enhance disease resistance and achieve more uniform germination.

Market drivers:

Rising income levels, a growing population, and swift urbanization have heightened the request for fresh food and other agricultural products. In addition to substantial domestic consumption, the demand for high production levels is also driven by agricultural exports. Recognizing the potential of agrochemicals as a key economic driver, the Indian government acknowledges their significant role in the global supply chain.

Market challenges:

Limited awareness of modern precision farming and responsible agrochemical use results in substantial losses for Indian farmers. Growing awareness of the adverse environmental effects associated with certain agrochemicals, including soil erosion, water contamination, and biodiversity loss, is driving a shift toward more sustainable alternatives. Moreover, apprehensions about pesticide residues in food and potential long-term health impacts on both farmers and consumers can reduce the appeal of chemical-intensive practices.