The Indian agrochemical in-dustry, which enjoyed a 10-year long run of consistent expan-sion, experienced a contraction of around 3 per cent on a year-on-year basis during FY24 with revenues falling to around $10.3 billion from the previous year's $10.6 billion, the Rubix Industry Insights on Agrochemicals said. Factors such as global de-stocking trend, influx of competitive products from China and reduced demand during rabi season due to low reservoir account for over half of the production exceeding domestic levels impacted the industry.

The report said the resurgence will be fuelled by factors such as sustained Government support advancements in technology, and the expansion of the export market, all of which will propel the industry size to reach $14.5 billion by the close of FY28, the Rubix report said. 

LOW UTILISATION
"India has a unique characteristic driving the growth of the industry. Its current agrochemical usage sits at a mere 0.6 kg per hectare, a fraction compared to the Asian average of 3.6 kg/ha and a mere quarter of the global average of 2.4 kg/ ha. This low utilisation signifies immense potential for market expansion in the coming years, presenting a fertilse ground for the industry growth," rubix said" India has become the worlds largest exporter of agrochemicals with US and Brazil being the top two export destinations. Exports account for over half of the production exceeding domestic Sales. India's agrochemical ex- ports have increased from $3.1 billion in  FY19 to $5.4 billion in FY23 with herbicides dominating the category.

The share of herbicides have increased from 31 percent of total exports to 41 percent between FY19 to FY23.

Factors such as thrust on integration to reduce the dependency on chinese imports, diversification of product portfolio, increase in registration of new agrochemical molecules despite percieved complex registration process and initiatives such as drone didi scheme to encourage drone application and the Governments focus on digital services through the digital agriculture mission are seen driving the growth of the sector.