India Biopesticides Market- Trend Analysis & Forecast to 2030

Biopesticides production in India reached 4.99 thousand tonnes and witnessed a CAGR of 4.5% during the period from 2016 to 2023. Neem-based biopesticides are largest product category in India biopesticides market. Agriculture crop area treated with biopesticides stood at 15.64 million hectares in 2023, which is 7.53% of total cropped area. Rice and cotton stand as the primary crops responsible for the significant consumption market growth of biopesticide products.

Market/ Product Overview

India's biopesticides market has witnessed significant growth in recent years owing to the increasing adoption of sustainable agricultural practices and the rising demand for organic products. Biopesticides are derived from natural substances like plants, animals, bacteria, and certain minerals, making them environmentally friendly alternatives to chemical pesticides.

India plays a crucial role in the global biopesticides supply chain due to its abundant biodiversity and growing emphasis on organic farming. The country's diverse agro-climatic conditions provide an ideal environment for the cultivation of biopesticide ingredients, thus contributing to its prominence in the global market.

Agrochemicals Consumption Trend in India

In India, the consumption of agrochemicals has been on the rise, fueled by factors like population growth and the need for increased food production. Shifts towards intensive and commercial farming practices increase the reliance on agrochemicals for higher productivity and profitability. Farmers are increasingly using fertilizers and pesticides to boost crop yields and protect against pests and diseases. However, there's a growing awareness of the environmental and health impacts, prompting calls for sustainable alternatives and integrated pest management practices. Government initiatives promoting organic farming are influencing this trend towards more eco-friendly approaches.

India total consumption of pesticides in 2023 stood at 467.82 thousand tonnes. As of March 2024, the Central Insecticides Board and Registration Committee (CIBRC) have registered 946 formulations of solo pesticides for use in the country (717 in 2019).

India Biopesticide Production & Demand Trend

The production of biopesticides in India has been steadily increasing to meet the rising demand from farmers and agricultural industries. Factors such as government initiatives promoting organic farming, consumer awareness about the harmful effects of chemical pesticides, and the implementation of stringent regulations on pesticide residues in food products have propelled the demand for biopesticides. In 2023, India biopesticides consumption accounted for around 11% share in total pesticides consumption.

India Biopesticides Market Growth Factors

■ Government support and incentives for organic farming
■ Growing consumer preference for organic produce
■ Rising environmental concerns and awareness
■ Increasing pest resistance to chemical pesticides
■ Expansion of distribution networks and improved access to rural market

Market Restraints & Challenges

■ Limited awareness and technical knowledge among farmers
■ High production costs compared to chemical pesticides
■ Lack of standardized regulations for biopesticides
■ Limited shelf life and efficacy compared to chemical counterparts
■ Insufficient infrastructure for storage and distribution

India Biopesticides Industry: Supply Chain Constraints and Value Chain Challenges

The India biopesticides supply/value chain faces numerous bottlenecks and challenges, hindering its efficient operation and growth trajectory. These challenges include inadequate infrastructure, such as limited manufacturing and storage facilities, which lead to production constraints and product degradation.

Access to quality inputs and raw materials is another issue, affecting product quality and consistency. Regulatory hurdles and lengthy approval processes delay market entry and increase compliance costs, while a shortage of skilled labor exacerbates production and application challenges. Limited market access and distribution networks, coupled with perception challenges regarding the efficacy of biopesticides, further impede market growth.

Additionally, the higher production costs of biopesticides compared to chemical pesticides make them less competitive in price-sensitive markets, necessitating efforts to improve cost competitiveness. Addressing these challenges requires collaborative efforts from government, industry, and other stakeholders to enhance infrastructure, streamline regulations, and promote awareness and adoption of biopesticides for sustainable agricultural practices.

Trend of Biopesticides Demand & End-Use Crops

Biopesticides are increasingly being used in a variety of crops including fruits, vegetables, cereals, and pulses. There is a growing demand for biopesticides in horticultural crops due to their minimal residue levels and compatibility with integrated pest management practices.

While chemical pesticides still dominate the Indian agrochemicals market, there is a noticeable shift towards biopesticides driven by regulatory pressure, consumer demand, and environmental concerns. This trend is expected to continue as the adoption of sustainable agricultural practices increases.

Biopesticides Trade (Export & Import) Trend

India is both a net importer and exporter of biopesticides. India exported US$ ** million valued biopesticides products in 2023. The country imports certain specialized biopesticides to complement its domestic production while also exporting to international markets, particularly in regions with a high demand for biopesticide products such as Japan, USA, Mexico, Brazil, Nepal, Nigeria, and UAE.

Inda Biopesticides Market Competitive Analysis

The India biopesticides market is characterized by the presence of both domestic and multinational companies. Companies are investing in research and development to create innovative biopesticide products tailored to the Indian agricultural landscape. Many companies are expanding their distribution networks and market reach to penetrate deeper into rural areas where traditional chemical pesticides dominate. This involves establishing partnerships with local distributors and agricultural cooperatives. Some companies are forming strategic partnerships and collaborations with research institutions, universities, and government agencies to enhance their biopesticide offerings and access to cutting-edge technology.

In December 2023, IPL Biologicals entered into a memorandum of understanding with the Gujarat State Biotechnology Mission, a state government agency, to establish a cutting-edge production facility for biofertilizers and biopesticides in the region, with an investment of INR 4000 million.

Key Companies in India Biopesticides Market include (Manufacturers/Suppliers/ Exporters),

■ Bayer CropScience
■ BASF India
■ UPL Limited
■ Biotech International Limited
■ Coromandel International Limited
■ Sumitomo Chemical India
■ T. Stanes & Company Limited
■ Tagros Chemcials India Limited
■ Ajay Bio-Tech (India) Ltd.
■ SOM Phytopharma (India) Limited (AgriLife)
■ IPL Biologicals (International Panaacea Limited)
■ Gujarat State Fertilizers & Chemicals
■ Oro Agri
■ Kay Bee Bio-Organics Pvt. Ltd.

Future Outlook

The India biopesticides market is poised for continued growth driven by factors such as increasing consumer awareness, government support, technological advancements, and the need for sustainable agricultural practices. However, addressing challenges related to infrastructure, regulatory frameworks, and market access will be crucial for realizing the full potential of the biopesticides industry in India. As the demand for organic products continues to rise globally, India has the opportunity to emerge as a leading player in the biopesticides market, both in terms of production and innovation.