Pesticides are broadly classified into five major groups:
insecticides, fungicides, herbicides, rodenticides, and
The pesticides industry has grown by 7.6
per cent during the last 20 years. It has also
undergone a structural change from low
value products to high value products. The
major constituents of this industry are
technical grade material manufacturers,
formulators, and dealers.
In this article, U K Srivastava and N T
Patel analyse the growth of the pesticides
industry, the changes in the product mix,
the problems of the constituents, and the
marketing scenario. According to them,
there is vast scope for accelerating pesticides
consumption by diversifying to hitherto
untapped regions and crops. This, however,
calls for a major market development effort
on the part of the industry.
U K Srivastava is Professor and N T Patel is
Research Associate in the Centre for
Management in Agriculture at the Indian
Institute of Management, Ahmedabad.
Vol.15, No.2, April-June 1990
fumigants. The constituents of this industry include
technical grade material manufacturers, formulators,
dealers (sale points), and consumers.
This article attempts to highlight the growth of the
pesticides industry, changes in the product mix, market
concentration, flow of materials, problems of various
constituents, and the emerging market scenario.
Growth of Pesticides Industry
Since 1952, considerable emphasis has been given to
self-reliance in the production of technical grade pes-
ticides. The installed capacity increased from 19,280
tonnes in 1966 to 1,02,328 tonnes in 1985-86 (Table 1)
showing an 8.3 per cent annual rate of growth. Produc-
tion of technical grade pesticides has increased from
13,948 tonnes in 1966 to 54,918 tonnes in 1985-86. Actual
production as a proportion of installed capacity has
declined from 72.34 per cent in 1966 to 53.67 per cent in
1985-86. The rates of growth of actual production in
quantity and value terms are shown in the following
estimated equations:
logY= 9.636 + 0.0761 ...(1)
(15.99)*
R2 = 0.93
Growth rate = 7.67 per cent (in quantity terms)
log Y = 7.384 + 0.12611 .... (2)
(15.16)*
2
R = 0.97
Growth rate = 12.61 per cent
(in value terms)
*Figures in brackets indicate t values.
The growth rate in value terms is about 1.66 times
of the growth rate in quantity terms. A more important
feature is that the weightage of two low value products
BHC and DDT has come down from 82.3 per cent in
23
 Table 1: Installed Capacity and Production of Technical Grade Pesticides
(Quantity in tonnes)
(Value itt Rs million)

Installed Prod11ct icm Capacity BHCandDDT OtiJer Products

Capacity Utiliza- Production
Qum1tity Value• tion (%) Quantity Value" Quantity Value•

1966 19280 13948 316.12 72.34 9911 166.57 4037 149.55

(82.3) (52.7) (7.7) (47.3)

1971 42973 24908 541.1R 57.96 20365 279.90 4543. 261.28

(81.8) (51.7) (18.2) (48.3)

1975-76 50050 35036 824.46 70.00 28345 349.82 6691 474.64

(80.9) (42.4) (19.1) (57.6)

1980-81 74850 43281 t4n.64 57.82 32761 370.61 10520 1102.03

(75.7) (25.2) (24.3) (74.8)

1985-86 102328 54918 3413.56 53.67 3oS87 393.37 24032 3020.19

(56.2) (11.5) (43.8) (88.5)

"Value of production is computed at constant prices prevailing in 1985-86/1986-87.

Source: Indian Chemical Statistics, 1986-87.

Table 2: Share of Different Groups of Technical Grade Pesticides

(Quantity in tonnes)
(Value in Rs million)

Percentage Share of
Production Insecticides Herbicides/ Fungicides Fumigants Rod.enticides/
Weedic.ides Others

1981-82 Quantity 49733 89.9 2.2 6.1 1.2 0.6

Value• 2479.53 69.7 18.3 8.5 2.8 0.7

1982-83 Quantity 58471 91.3 1.8 5.1 1.2 0.6

Value• 2879.14 76.2 13.4 6.9 2.0 1.5

1983-84 Quantity 60254 90.4 2.2 s.o 1.8 0.6

Value• 3155.44 74.6 13.7 6.8 4.2 0.7

1984-85 Quantity 58609 87.9 2.7 6.7 2.0 0.7

Value• 3043.34 76.0 8.6 9.5 4.8 1.1

1985-86 Quantity 54918 87.2 3:3 7.0 2.0 0.5

Value" 3413.56 77.0 9.7 8.8 3.9 0.6

1986-87 Quantity 56186 . 84.7 3.8 8.1 2.6 0.8

Value• 3059.76 74.8 13.4 5.6 5.4 0.8

•value of production is computed at constant prices prevailing in 1985-86/1986-87.

24 Vikalpa
1966 to 56.2 per cent in 1985-86 in quantity terms and cent, 11.4 per cent and 5.1 per cent respectively. These
from 52.7 per cent in 1966 to 11.5 per cent in 1985-86 in five states together account for about 81.5 per cent of the
value terms (Table 1). The weightage of high value consumption in the country.
products has increased from 7.7 per cent in 1966 to 43.8
per cent in 1985-86 in quantity terms and from 47.3 per Table 3: Consumption of Pesticides for 1984-85
cent to 88.5 per cent in value terms. This indicates a (in Rs million)
structural shift from low value products to high value
products over the years. Because of this, growth of the Crop/State Estimated Pesticides Percentage to Total
industry in value terms has been 66 per cent higher than Consumption Pesticides Consumption
that in quantity terms. Imports amounted to only Rs 79
million in 1984-85 in the industry's turnover of Rs 6,000
million. Exports have been of a low order.
Among the five groups of pesticides, insecticides
dominate in quantity and value terms (Table 2). In
1981-82, the share of insecticides was 89.9 per cent but
it declined to 84.7 per cent in 1986-87. In value terms,
the share was 69.7 per cent in 1981-82 and rose to 74.8
per cent in 1986-87. The share of herbicides and fun-
gicides in terms of quantity has increased from 2.2 per
cent and 6.1 per cent in 1981-82 to 3.8 per cent and 8.1
per cent in 1985- 86 respectively (Table 2). But the share
of herbicides and fungicides in value terms has declined
from 18.3 per cent and 8.5 per cent in 1981-82 to 13.3 per
cent and 5.6 per cent in 1985-86 respectively. This indi-
cates a shift from high value products to low value
products in the case of herbicides and fungicides. In all
the six years, among the five groups of pesticides, the
rank of fungicides in the production of technical grade
pesticides in quantity terms stood second and that of
herbicides remained third but in value terms it was the
reverse.
Note: Statewise arid cropwise consumption of pesticides is
Pesticides Use in Agriculture estimated on the basis of data collected on per hectare use of
pesticides for different crops in different states and the area
Till 1971, the major production of pesticides was used under cultivation of different crops in different states. The
for non-agricultural purposes. In subsequent years, source of data is the Directorate of Economics and Statistics,
more than 58 per cent of the production was consumed Department of Agriculture and Cooperation, Ministry of
by the agricultural sector. The value of pesticides con- Agriculture, Government of India, New Delhi.
sumed in the agricultural sector was about Rs 5556.37
million in 1984-85 (Table 3). Cotton and paddy ac- Structure of Pesticides Industry
counted for 67.3 per cent of this value. The shares of
jowar, fruits and vegetables, wheat, arhar, and ground- The number of pesticides in the schedule to the1 Insec-
nut were 8.9 per cent, 7 per cent, 6.4 per cent, 2.8 per ticides Act, 1968, was 385 till July 1987. Out of them, 123
cent, and 2.5 per cent respectively. had been approved by the registration committee.
During the last five years, only 42 products are in actual
Spatial Distribution of Pesticides Use in Agriculture production.
Data on spatial distribution of consumption of pes-
ticides in agriculture for 1984-85 are presented in Table Pesticides produced by technical grade materials
3. Consumption is very high in Andhra Pradesh which manufacturers are used as raw materials by formulators
accounts for 33.6 per cent of the pesticides consumption and the formulated products are sold through whole
in the country. Karnataka, Gujarat, Punjab, and salers and retailers to the farmers (Figure 1). The profile
Maharashtra account for about 16.2 per cent, 15.2 per of each of the constituents of pesticides industry is
presented next. '

Vol.15, No.2, April-June 1990 25

Technical Grade Material Manufacturers
About 79 technical grade materials manufacturers are
registered in India. Of them only 51 have been active in
recent years. According to data presented in Table 4,10
companies account for 80 per cent of the production of
technical grade materials in quantity terms and 52.5 per
cent in value terms.
In quantity terms, Kanoria Chemicals has the
largest share (27.3 per cent) and Rallis India the lowest
26
(2.3 per cent). But in value terms, Kanoria Chemicals
ranks seventh (3.34 per cent) and Rallis India fifth (5 68
per cent). In value terms, Ciba-Geigy has the largest
share (9.82 per cent) and Mico Farm has the lowest (1.43
per cent). But in quantity terms, Ciba-Geigy ranks sixth
(4.2 per cent) and Mico Farm eighth (2.6 per cent). This
indicates that Kanoria Chemicals, Mico Farm, and Tata
Chemicals are producing low value products while
Ciba-Geigy, Excel, and Bayer India are producing high
value products.
Vikalpa
 BHC Kanoria Chemicals 58.0
DDT Hindustan Insecticides 100.0
Malathion Ficom Organics 2
Parathion Methyl Bayer
Metasystox Bayer
Fenthion Bayer
Dimethoate Rallis India
DDVP Ciba-Geigy
Quinalphos Sandoz
Monocrotophos Ciba-Geigy
Phosphamidon Ciba-Geigy
Thimet Phorate Cyartamid
Ethion Shaw Wallace
Endosulfan Excel
Fenvalerate Gujarat Insecticides Ltd. 31.3
Cypermethrin Bharat Pulverising 38.7
Copper Oxychloride Traven Chochin 100
Dithon Indofil 100.0
Paraquat Indian Expo. Ltd.( ACCI) 100.0
Aluminium Phosphide United Phos.Pvt. Ltd. 54.4
Source: Monitoring and Evaluation (Chemicals) Cell, Depart- Total production of 20 products
ment of Chemicals and Petrochemicals, New Delhi. = 51811 tonnes =
Total production of remaining products 3037 tonnes

Information presented in Table 5 indicates that, Grand Total = 54918 tonnes

except BHC, malathion, ethion, fenvalerate, cyper-
methrin and aluminium phosphide, most other
products have a marked market concentration in the
sense that a company has a predominant share. About
94.3 per cent of the total production is concentrated in
16 companies. Of these 16 companies, 13 have the bulk
of the market share of the products group dealt by them.
Bayer India accounts for the entire production of
parathion methyl, matasystox, and fenthion, while HIL,
Ciba-Geigy, Traven-Chochin, Indofil, and Indian Expo.
Ltd (ACC) account for the entire production of DDT,
DDVP, copper oxychloride, dithion, and paraquat
respectively.
To ensure proper distribution of pesticides at
reasonable cost to the farmers, a scheme has been intro-
duced by the government under which 50 per cent of
the total production of technical grade pesticides is
supplied by manufacturers to non-associated for-
mulators. But this scheme is not effective.
Share of 20 products in total production = 94.3% Source:
Monitoring and Evaluation (Chemicals) Cell, Department of
Chemicals and Petri -chemicals, New Delhi.
sources. According to the experience of one of these
organizations, suppliers have hiked their prices after
the announcement of the new policy. For example, the
price of technical monocrotophos available from Ciba-
Geigy, Switzerland, ranged from US$ 4.60 to $4.80 with
180 days credit before the announcement. After the
announcement of the new policy, the price has been
hiked to US$ 5.60 and no credit is available to Indian
buyers.
In March 1989, the Government of India raised the
import duty on three widely used pesticides, namely,
monocrotophos, butachlor, and methylparathion tech-
nicals from 70 per cent to 105 per cent. This has again
raised the prices of these three pesticides.

To provide pesticides at lower prices to farmers, the
Government of India allowed imports of 15 pesticides
in 1988. Import duty on these pesticides was reduced
from 105 per cent to 70 per cent. But only a few organiza-
tions could import them and that too from specified
Some Observations on the Operations of Technical
Grade Material Manufacturers
• Almost all the companies have been established
with foreign financial and technical collabora-

Vol.15, No.2, April-June 1990 27

 tions. Not a single pesticide has been developed
in India. The time lag between the development
of technical grade material and its introduction in
India is about 5 years.
• Most companies started with the production of
dyestuffs, pharmaceuticals and other products.
Later on they took up production of technical
grade pesticides.
• Most technical grade pesticides manufacturers
also formulate pesticides.
• The cost of a plant to produce technical grade
pesticides varies from Rs 30 to Rs 40 million. Once
a product becomes obsolete, the existing plant can
be converted with minor changes to produce
another technical grade pesticide.
• The utilization of installed capacity to produce
technical grade pesticides ranges from 20 to 60 per
cent. This shows under-utilization of installed
capacity.
• The product range of a company is 2 to 6 because
the cost of the plant to produce a technical pes- ,
ticides is very high. A plant which is used to
produce one technical pesticide cannot be used to
produce another technical pesticide without
making changes in the plant.
• Some companies produce intermediate products
(raw material to produce technical pesticides) and
also use them as raw materials to produce techni
cal grade pesticides.
• It has been observed that on an average the cost of
raw materials, processing cost and gross profit is
about 60.5 per cent, 20.5 per cent and 19 per cent
of the price per kg of technical grade pesticides,
respectively.
Formulators
Pesticides in their original form are highly con-
centrated. Therefore, they cannot be applied directly to
plants/target organisms. Formulators convert these
pesticides into an applicable form by using suitable
solvents. The commonly used formulations can be
grouped as follows:
• Formulations Applied after Dilution with Water:
Soluble Concentrates (SC), Emulsifiable Con
centrates (EC), and Wettable Powders (WP).
• Formulations Applied Directly: Dusts and
Granules.
28
The total number of registered formulators is about 800.
Out of them, 160 are associated formulators and the rest
are non-associated formulators. Associated for-
mulators are associated with technical grade material
manufacturers and hence get credit and raw materials
easily even in the peak season. Moreover, their products
receive promotion and market support from big com-
panies.
Some Observations on the Operations
of Formulators
• No formulator produces all the registered
products. On an average, about 29.5 per cent of the
registered products are produced by the for
mulators based in Gujarat and 33 per cent by those
based in Andhra Pradesh.
• Per unit fixed investment for the Gujarat for
mulators works out to about Rs 11,16,250 and for
the Andhra Pradesh formulators about Rs
8,65,000. The average ratio of working capital to
total fixed investment is 9.19 for Gujarat for
mulators and 3.7 for Andhra Pradesh formulators.
This is because the business of pesticides is on cash
basis in Andhra Pradesh while it is on credit basis
in Gujarat.
• In this industry, breakeven point is reached at 20
per cent utilization of the installed capacity; 35 per
cent is optimum point. The average actual utiliza
tion of installed capacity is about 17 per cent.
• Plants for pesticides formulation are being put up
for more than required capacity with the assump
tion that demand will double in the near future.
The variations between the installation costs of
high and low capacity plants are not linear and
there are scale economies.
• One litre packs are most commonly adopted by
Gujarat and Andhra Pradesh formulators.
• The net return on total investment is 17.4 per cent
for Gujarat formulators and 11.3 per cent for
Andhra Pradesh formulators. This is because the
pesticides market in Andhra Pradesh is more
competitive than that in Gujarat.
• The average rate of commission given by the for
mulators to distributors is about 15.5 per cent in
both states.
• Almost all formulators get credit from technical
grade material manufacturers in any season. The
rate of cash discount on purchase of technical
grade pesticides is 1.5 per cent a month.
Vikalpa
• Most of the formulators provide credit to their
distributors for 30 to 60 days. The rate of cash
discount is 1.5 per cent a month.
Dealers
The end users of pesticides arc farmers and households
but, except in a few cases, formulated products are not
sold directly to them but through wholesalers/dis-
tributors and retailers. Many local formulators sell their
products to distributors and also to retailers. Such for-
mulators pass on a small percentage of their profits
from direct sales to retailers to the concerned area dis-
tributors.
Retailing of pesticides is done by the state depart-
ments, cooperatives, and private dealers. According to
the Seventh Plan Working Group report on pesticides,
there are 77,080 distribution points for pesticides,
private traders accounting for the bulk of them. About
half of the sale points are located in the five status of
Andhra Pradesh, Tamil Nadu, Uttar Pradesh, Gujarat,
and West Bengal.
Some Observations on the Dealers
• Almost all distributors of pesticides also operate
retail outlets.
• In Gujarat, about 30 per cent and in Andhra
Pradesh about 60 per cent of the dealers are ex
clusively dealing in pesticides.
• One litre packing size is in high demand and
accounts for around 31 per cent of the sales of
liquid pesticides in Gujarat and 56 per cent of sales
in Andhra Pradesh.
• The average sales of pesticides and working capi
tal invested by Andhra Pradesh dealers are sig
nificantly higher than those of the Gujarat dealers.
• Variation in the selling price of pesticides per litre
between two extreme packing sizes ranges from 3
to 70 per cent. Part of this variation is justified
because of difference in cost of packing. On per
litre basis, smaller size packings cost more than
large sizes.
• The rate of commission received by the dis
tributors on the purchase of pesticides varies from
5 to 23 per cent and the rate of commission given
by distributors to dealers varies from 2.5 to 18 per
cent. Generally, distributors pass on 5 per cent less
commission to dealers in Gujarat. But in Andhra
Pradesh, the rate of commission received by
dealers varies from 1 to 7.5 per cent. They believe
that profit should be increased by increasing the
volume of business.
Vol.15 No.2, April-June 1990
• The rate of return on the investment for working
capital is about 29.7 per cent in the case of the
Gujarat dealers and 23.5 per cent in the case of the
Andhra Pradesh dealers.
Share of Constituents
The total turnover of pesticides in India at the final
consumption level is about Rs 5,556 million (1984-85).
Figure 2 shows the share of various constituents of the
pesticides industry and government in the turnover in
1984-85. The technical grade material manufacturers'
share is Rs 3,140 million, the formulators' Rs 667 mil-
lion, the distributors' Rs 275 million, and the retail
outlets account for Rs 555 million. Government realized
about Rs 649 million.
In practice, some functionaries perform more than
one role. For example, most of the technical grade
material manufacturers also have formulating facilities
and distributors/wholesalers generally maintain a
retail outlet.
Figure 2: Share of Various Constituents of
Pesticides Industry in Consumer's Rupee
Technical Grade
Materials Manufacturers
Rs 341 crores
Source: Srivastava, U K and Patel, N T, Pesticides Industry in
India: Issues and Constraints in its Growth. (1990). New Delhi:
Oxford &IBH.
Market Development and Sales Promotion
Almost all technical grade material manufacturers deal
directly with formulators. Thus, there is a direct market-
ing channel for technical grade pesticides. They have
depots from where supply of technical grade pesticides
is made. Most of the depots are located in those cities
where the excise duty is nil or minimum.
Market development and sales promotion efforts are
needed for formulated pesticides. The formulators
29
can be grouped in four categories on the basis of their
product range and area of market:
• Producing more (above 6) products and market
ing at all India level.
• Producing few (less than 7) products and market
ing at all India level.
• Producing more (above 6) products and market
ing at regional or state level.
• Producing few (less than 7) products and market
ing at regional or state level.
The different strategies for market development
and sales promotion adopted by the four categories of
formulators are as follows:
• Major product promotion efforts are undertaken
by the first two groups of formulators. Others tag
along their products with the leaders and compete
in the market on the basis of prices and commis
sion.
• Generally, formulators of the first three categories
market their products through distributors/
stockists. But the formulators of the last category
sell their products to distributors and retailers.
Sometimes, they also deal with big farmers to
increase their sales.
• The rate of commission given by the formulators
of the first two categories (maximum 15 per cent)
is lower than that of the last two categories (max
imum 22 per cent). The formulators of the last two
categories feel that the small formulators can com
pete with the big formulators by giving higher
rates of commission to distributors and retailers.
• The price of the products of the formulators of first
two categories is comparatively higher (by about
5 per cent) than that of the last two categories.
• To increase the sales of the pesticides, the for
mulators of the first two categories have area of
fices in the country. Each area office has one area
officer, one or two sales officers, some sales repre
sentatives, one field officer, and some field assis
tants. But the formulators belonging to the last
two have only sales representatives.
• A few formulators of the last two categories give
some percentage of their sales of pesticides to the
regulatory machinery at the grassroot level to
force the dealers to increase the sales of their
products.
30
• The media for sales promotion adopted by the
formulators of the first two categories are
newspaper advertisements, pamphlets, leaflets,
wall printing, posters, audio cassettes, cinema
slides, etc. But the media of sales promotion
adopted by the formulators of the last two
categories are limited to newspaper advertise
ments, pamphlets, and leaflets.
• Credit provided by the formulators of the first two
categories is for 30 days. But the formulators of the
last two categories provide credit for 30 to 90 days
to compete with the formulators of the first two
categories.
• As the farmers are not well aware of the quality of
the products and weight of the packs, some for
mulators of the last two categories produce sub
standard quality products and prepare even
underweight packs. They do this so that they can
fix low prices and give more commission to their
customers. The formulators of the first two
categories maintain the quality of their products
and generally maintain correct weight in their
packs. So, their products are popular among the
users.
• Most of the formulators do not have any interface
with the farmers. Everyone depends on dealers to
push their products.
Problems Faced by Technical Grade Pesticides
Manufacturers
The major problems faced by technical grade material
manufacturers are as follows:
• Registration procedure is lengthy and costly.
• The technology involved in the manufacturing
process is hazardous, requiring special precau
tions against fire, explosion, and toxicity. There
fore, quality control is a critical factor. The
products are basically toxic and in some cases
dangerous.
• Demand for pesticides is highly seasonal and
hence capacity utilization is low.
• The pesticide industry is highly risk prone. Risks
arise because of: (i) failure of monsoon and hence
of crops; (ii) product obsolescence and perisha
bility; and (iii) obsolescence following develop
ment of new and more effective pesticides.
• The formulators do not lift technical grade pes
ticides allotted to them under the 50 per cent
allocation scheme during off season. So, the tech-
Vikalpa
 nical grade material manufacturers not only have
to bear inventory costs but also have to dispose
stocks.
• Import duty on intermediate products (inputs for
technical grade pesticides) is very high.
• Excise duty on intermediate products which are
produced and used by the company itself is im
posed without any transaction taking place.
• In the case of some technical pesticides (butachlor)
the price of the imported product is lower than
that of the local product. In this case, it is very
difficult for Indian companies to compete in the
market in their own country.
• Data on technical grade pesticides generated by
the company for registration purposes do not
enjoy any protection.
Problems Faced by Formulators
The major problems faced by the formulators are as
follows:
• The formulators do not get credit from technical
grade material manufacturers without bank
guarantee.
• Technical grade material manufacturers create ar
tificial shortages of some technical grade pes
ticides in peak season so that they themselves can
formulate more products. This way they try to
create monopoly in the market during peak
season.
• The tax structure is not uniform throughout the
country. This creates problems in fixing prices of
raw materials and hence of formulated products.
• Ban on import of some technical grade pesticides
has created a monopoly situation for indigenous
manufacturers.
• Electricity rates are not uniform in the country.
For example, the rates in Gujarat are very high.
This creates a difference in the cost of formulation
of pesticides.
• There is cut-throat competition in the formulated
pesticides market. The newer and local for
mulators produce sub-standard quality products
and keep the price low to survive in the market.
This affects the volume of sales of the quality
formulators.
Vol.15, No.2, April-June 1990
• The life time of formulated products is short (one
year).
• Registration procedure is lengthy and tedious.
• No government encouragement is given to the
small formulators. For example, the government
purchases pesticides and distributes them to
farmers at subsidized rates. However, such pur
chases are normally made from companies like
Ciba, Bayer, etc. and not from small formulators.
• The 50 per cent allocation of technical grade
material scheme is not helpful to the formulators
as they get a letter from the government about the
technical grade pesticides allotted to them in the
off season and not in the peak season.
• Because of the existence of spurious products in
the market, genuine formulators face a lot of
problems.
• In the name of quality control, pesticide inspectors
harass the formulators.
Problems Faced by Dealers
The problems faced by the dealers are several:
• Period of credit (maximum three months) is not
enough because the farmers are in need of credit
for six months, i.e. for one complete crop season.
• The life time of the formulated pesticides is about
one year for almost all the products. Once a certain
quantity of pesticides is purchased by the dealer,
it is his responsibility to sell before its expiry date.
The company is not bound to replace the unsold
quantity of pesticides. Thus, the dealer has to
either bear the loss or try to sell the outdated stock
at a low price.
• The dealers are not fully trained in the use of
appropriate type of pesticides for different crops
and for different types of pest attacks.
• A few local formulators produce sub-standard
quality products and their packings are under
weight. This becomes a major problem for dealers.
Some dealers have lost their licences because of
this.
• In the name of quality control, pesticide inspectors
frequently visit dealers' shops and ask them to sell
more of certain products in which they get their
commission from the companies.
• Some dealers have reported that they had to write
off some part of credit given to the farmers be
cause of crop failure.
31
Problems Faced by Farmers
The major problems faced by the farmers are as follows:
• The sub-standard quality of products of local for-
mulators.
• Non-availability of credit. Dealers do not give
credit to all farmers as there is no guarantee of
repayment. Only a few well-to-do farmers get
credit.
• The period of credit is one month in peak and
three months in off season. But from the farmers'
point of view, the period of credit should be six
months.
• Most of the farmers are illiterate to read the expiry
date on the label. Quite often, dealers sell outdated
stocks.
• The smaller packing size is comparatively costlier
than the large sizes. Most farmers are small
farmers and their requirement of pesticides is also
small at a time. So, small farmers have to pay more
in relative terms.
• There is confusion about the type and quantity of
pesticides to control pests. This is because, for the
same pest attack on the same crop, some pes
ticides which are recommended by the companies
are not recommended by the agricultural univer
sities and research institutions. Further, there is
also significant variation between the dosages
recommended by the manufacturers and the in
stitutions.
Role of Manufacturers/Formulators in
Education of Dealers/Farmers
Realizing the vital need and special responsibilities in
this important task of training in the safe and judicious
use of pesticides, manufacturers / formulators, both in-
dividually and through their associations, have taken
up a number of steps. These efforts are in two directions:
statutory requirement and voluntary efforts.
Statutory Provisions
As per the Insecticides Act, 1968, and the Insecticides
Rules, 1971, the manufacturer has to generate informa-
tion on the toxicity and safety of each pesticide in addi-
tion to the efficacy data. Such information includes
acute, subacute, and chronic toxicity data on mammals;
toxicity to birds, fish; beneficial species; livestock
toxicity; human volunteer exposure studies; persist-
ence/metabolism in soil, water and plant, toxicity of
metabolites; and residues on each crop on which the
particular pesticide is used.
32
However, this information seldom reaches the
farmer. Hence he does not understand the implications
of such data. More important information from the
consumer's point of view are the label and leaflet which
go along with each package of pesticides. These should
include details on correct use directions, waiting
periods, precautions for use, storage, toxicity,
symptoms of poisoning, first aid measures, antidotes,
and disposal of containers and unused chemicals in
addition to warnings. The information listed above
should be printed on labels and leaflets not only in
English but also in a few regional languages.
Voluntary Efforts
Manufacturers of pesticides and their associations have
organized training programmes on correct use of pes-
ticides for officials of the agricultural departments, ex-
tension workers, village level workers, dealers, and
farmers. The Pesticides Association of India has been
imparting specialized training on the safe and judicious
use of pesticides to the agricultural extension officers of
various states since 1985. The curriculum includes
handling, storage, transport, and safe use of pesticides.
More efforts are necessary to educate extension
workers, village level workers, dealers, and farmers on
safe and judicious use of pesticides in agriculture.
Emerging Marketing Scenario
The pesticides industry has grown rapidly during the
last two decades. It has also undergone a structural
change from producing low value products to one
producing high value specialty products. Despite this,
the use of pesticides is concentrated in selected districts
of a few states. The bulk of pesticides are consumed by
crops like paddy and cotton. Crops which account for
less than one per cent of the use are sugarcane, barley,
rape and mustard, tobacco, and gram. Plantation crops
like rubber, tapioca, coconut, and spices more or less
have remained outside the ambit of pesticide use.
The pesticides use pattern is very similar to that of
fertilizers which also display geographical and crop
concentrations. This is understandable because
marketers usually tap first those markets with more
potential and easier access. This pattern, however, has
to undergo a change during the next decade of agricul-
tural development.
During the Eighth Plan, emphasis will be on ac-
celeration of agricultural growth in rainfed areas, east-
ern regions, and crops like oilseeds and pulses. This
process has already begun with the identification of 66
districts for intensive development. Efforts have also
Vikalpa
been made to delineate 15 agro-climatic regions for
promotion of optimal cropping mix. This scenario
opens up new opportunities and challenges for the
pesticides industry.
To promote sales of pesticides, the industry will
have to generate guidelines for economical use of pes-
ticides for crops grown in disadvantaged regions. This
has to be supplemented with development of crop
specific products and pricing and promotion of these
products in relation to crop profitabilities.
Market development efforts are time consuming and
costly. As the industry is presently dependent on dis-
tributors and dealers to push their products, the chal-
lenge may not be automatically taken up because the
turnover per outlet in disadvantaged regions is going
to be much smaller than what is obtained now. Similar-
ly, the promotional cost is also going to be high. Perhaps
the pesticides industry is in need of governmental sup-
port for market development.
The above analysis indicates the magnitude of
problems faced by various constituents of the industry.
These have to be resolved by various constituents of the
industry itself so that the challenge can be met by the
industry.