Indian Agrochemical Market 2009 & TRADE OPPORTUNITIES between INDIA & CHINA

AIMCO PESTICIDES

AIMC O

Mr. Pradip Dave Chairman- AIMCO Pesticides Limited President- PMFAI

India & China :POPULATION GDP EMPLOYED IN AGRL. AGRL./ GDP ARABLE LAND VALUE OF AGRL.GDP

MACRO ECONOMIC INDICATORS - 2009

UNITS Billions Bio. USD Percent Percent Mio. ha Bio USD INDIA 1.09 1210 60 18.6 145.2 171.7 CHINA 1.314 7800 49 12.5 138.6 345.67

CHINAS agro. productivity is more than twice of India

Mr. P P Dave President PMFAI & Chairman AIMCO Pesticides Limited

Source: ISAAA Brief 37

INDIAN AGRICULTURE
Heavily dependant on monsoon KHARIF June to Sep. RABI Oct to Feb.

Only 40% of cultivated area is irrigated 60% of farm holdings are less than ONE ha. Benefits of Green Revolution Plateauing , due to Technology fatigue Horticulture is gaining ground. With less than 10% of the cultivated area, accounts for 28% of the agro. GDP .
Mr. P P Dave President PMFAI & Chairman of AIMCO Pesticides Limited

Indian Horticulture growing faster

Area under F & V : 11.7 Mio. ha,. ( Fruits 43% + Veg. 57%) India second largest producer of F & V after China. India accounts for 10% worlds F & V production . Horticulture crops account for 25% of agro. exports Export of Agro & processed food products in 2007 - 08 : 7.2 Bio USD 38% increase over previous year. Pesticides market in Hort. crops growing faster

Mr. P P Dave President PMFAI & Chairman of AIMCO Pesticides Limited

INDIA Pesticides Market : 2009

A] Agriculture
Insecticides Fungicides Herbicides Others

Mill USD % growth over 2008 680 220 250 30 1180 350 700 2230
Mr. P P Dave President PMFAI & Chairman of AIMCO Pesticides Limited

0.2 1.8 2.1 5.0 0.7

Total B] Non Agriculture

(Public Health / House hold)

C] Export
( Tech / Form. + Intermediates)

Grand Total

Source:- Industry Estimates

Indian Crop Protection Market - 2009

Plantations, Pulses / Others 17% Soyabeans / G'nut. 4% Wheat /Other Cereals 10%

Cotton 27%

Rice 21%

Fruits & Vegetables 21%

Insecticides market is shrinking due to BT cotton. Mr. P P Dave President PMFAI & Chairman of AIMCO Pesticides Limited

INDIAN PESTICIDES INDUSTRY: Segments : Multinationals : 11 Indian Basic Producers : 25 Formulators : 250 Strong basic mfg. set up & process know how Good environmental awareness / Management. Cost leadership in generic products. MNCs sourcing generics/contract mfr./R & D

Mr. P P Dave President PMFAI & Chairman of AIMCO Pesticides Limited

Adoption of BT - Cotton in India

Year 2005 2006 2007 2008

Mio. Ha. 1.3 3.8 6.2 17.2

BT cotton occupies nearly 76% of total cotton area.

Mr. P P Dave President PMFAI & Chairman of AIMCO Pesticides Limited

PESTICIDES CONSUMPTION(Kg/ha) LOWEST IN THE WORLD

18 17 16 14 12 10 8 6 4 2 0

10.7

10.5 6.6 5.8 4.5 0.48

Kg/ha

Taiwan

Japan

Holland

South Korea

France

USA

India

ndia uses only less than 2% pesticides, whereas produces 16% of the worlds food grain

Our yields are less in comparison to World

Crop Yields (q/ha) in different countries
S. No. CO UNTRY PADDY M A IZ E W HEAT

1 U .S .A . 2 IN D IA 3 C H IN A 4 P A K IS T A N 5JAP AN

7 0 .3 7 3 0 .0 8 6 2 .3 4 3 0 .2 7 6 7 .0 2

8 6 .0 3 1 7 .6 9 4 6 .7 0 1 5 .1 1

2 8 .2 0 2 7 .7 7 3 7 .2 9 2 4 .9 1

Mr. P P Dave President PMFAI & Chairman of AIMCO Pesticides Limited

LOSSES CAUSED BY DIFFERENT PESTS

Insects 26% Weeds 33%

Diseases 26%
th

Rodents & Others 15%

p losses : 90,000 cr.(Source : 37

report of Dept. of Chemicals etrochemicals, Govt. of India, the standing committee on petroleum and chemical
Mr. P P Dave President PMFAI & Chairman of AIMCO Pesticides Limited

BT Cotton Emerging Issues

High price of BT seeds Declining Insecticides market Micro nutrient deficiency showing up Secondary pests & diseases becoming dominant, eg. Mealy Bugs. With signs of Heliothis resistance, Bollgard II has been introduced. Assured yields / Increasing income to farmers
Mr. P P Dave President PMFAI & Chairman of AIMCO Pesticides Limited

Pharmaceuticals Advantage INDIA

India Low cost , high quality destination for R & D / Process Development Manufacturing Clinical Trials. MNCs are looking for strategic alliances . Compliance with IPR /GMP (mandatory for pharma units) India has the largest number of US FDA approved plants , outside the USA. Agrochemicals can follow the pharma route
Mr. P P Dave President PMFAI & Chairman of AIMCO Pesticides Limited

Agrochemicals - Advantage India

Strong growing domestic market Cost leadership in generics production Well developed basic chemicals Industry Growing Awareness about Environment, Safety & Health. Well established R & D set up / clinical trials. Relatively easier registration for Exports. Strong Institutions to support R & D / personnel needsUniversities / IITs / UDCT / IICT
Mr. P P Dave President PMFAI & Chairman of AIMCO Pesticides Limited

INDIA & CHINA Measures to realize Synergies:Tap Global opportunities together, exploit each others strength Dont look at each other as competitors, Take a collaborative approach Identify areas of strength & cost leadership Remove shackles / barriers for Indo- China trade & technology transfer.
Mr. P P Dave President PMFAI & Chairman of AIMCO Pesticides Limited

INDIA & CHINA Measures to realize Synergies:Identify excess capacities and eliminate them

Identify molecules wise cost leadership & protect market value Common pricing approach Exchange of technology / personnel China to use Indias Strong R & D capability, testing / Clinical trials Process Development strengths Environmental Management Skills.

Let India & China be the Global sources for not only generics but also for discovery products.
Mr. P P Dave President PMFAI & Chairman of AIMCO Pesticides Limited

Up coming Conferences of PMFAI International Crop Science Exhibition & Trade Meet 21-22 June 2010 at Hotel Grand Cevahir & Convention Centre, Istanbul, Turkey. Visit website for more details: www.pmfai.org

International Crop Science conference & Exhibition on Innovative Technology for Crop Protection and their impact on Environment January 2011, India

Thank You
Presentation By

LET US GROW & PROSPER TOGETHER

Mr. Pradip Dave

President Pesticides Manufacturers & Formulators Association of India (PMFAI)

Chairman AIMCO Pesticides Ltd Akhand Jyoti 8Th Road, Santacruz East, Mumbai 400 055 TEL: +91 22 67604000 FAX: +91 22 67604060 Email: ppd@aimcopesticides.com Website: www.aimcopesticides.com

D-516 Crystal Plaza, Andheri Link Road, Andheri (W), Mumbai 400053. India Email : pmfai@hathway.com Tel: +91-22-26734845 /46 Fax: +91-22-26734847 Website: www.pmfai.org