Pesticide Trend Review Prospects

8/4/2019 Pesticide Trend Review Prospects

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PESTICIDE

Crop protection chemicals or pesticides, as they are commonlyknown as, are chemicals which are used to control pests. Thepests may be insects, plant diseases, fungi, weeds,nematodes, snails, slugs, and others. Based on theapplication, they are classified as contact or systemic.Pesticides that only contact the pest to control them are calledthe contact type pesticides. Systemic pesticides are thosewhich need to be ingested to be effective.

The way that each pesticide attacks a pest suggests the bestway to apply it; to reach and expose all the pests


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ROLE OF PESTICIDES

The experience has shown that the Pesticidesplay a pivotal role in saving the agricultural

crops from destruction by their enemies likeinsects, diseases, weeds, rats,etc.

Crop losses up to 40% are saved byuse of high quality Pesticides


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The Challenge

The world must grow more crops on thecurrently available land to meet the increasingd e m a n d f o r f o o d , f e e d a n d f u e l


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Bigger challenge of global agriculture ?

Food and feed demand will be~50% higher by 2030

By 2025, 1.8 billion people will live in countries with water scarcity

The way to feed the world is not to bring moreland under cultivation,

but to increase yields, science is crucial


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Demand DriversPopulation growth & land scarcity

19602 people

2005>4 people

People fed each hectare

2030>5 people

19502.5 billion

20056.5 billion

2030

>8 billion

World population


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Technology & ModernizationCan Meet

The Challenges --- Our knowledge andinnovative technologyimproves the

productivity ofagriculture worldwide

It is estimated that w/outappropriate pesticide

use,up to 40% of all cropswould be lost to insects,weeds and diseases


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Today Chinas population is > 1.3 billion Thefood grains production is 300-350 million tons

Even though the irrigated land in China is

less than the irrigated land in India.In India, food grain production of 300 to 350

million tons can be achieved by enhancedand proper use of irrigation, high yieldingseeds, balanced use of fertilisers, high qualityplant protection, education to farmers etc.

INDIA vs CHINA


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ACCORDING TO THE 37

th

REPORT OF STANDINGCOMMITTEE ON PETROLEUM & CHEMICALS PLACEDIN PARLIAMENT ON 20.12.2009

The losses from pests, insects and diseases -

amounts to approx. Rs. 90,000 cores per annumThis situation calls for taking enhanced and effectivesteps for use of pesticides to save crop losses andincrease food grain production

Industry and Government to take special initiatives topopularize the use of insecticides, herbicides andfungicides to minimize the crop loss

LOSSES DUE TO PESTS IN INDIA


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Agriculture - India

Total area : 3,287,590 sq km

Gross cropped area: 1958 Lac Ha

Net cropped area : 1408 Lac Ha

Gross irrigated area : 872 Lac Ha

Net irrigated area : 622 Lac Ha

Land holding :

Marginal < 1 Hec : 63%

Small, Medium 1-4 Hec : 30%

Medium 4-10 Hec : 06%Large > 10 Hec : 01%

Population (2011):Population: 121.01 Crore

Growth rate 1.58%

Rural population 61.32%

16 Languages & 9 ReligionsCrops ( World Ranking):

No.1 in Fruits Vegs. : 1290 Lac MT

No.2 Rice producer : 1240 Lac MT

No.2 in Wheat : 800 Lac MT


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INDIAN PRODUCTIVITY..?CROP INDIA WORLD HIGHEST

RICE

GRNDNUT

SOYBEAN

COFFEE

PULSES

COTTON

WHEAT

3.0

0.9

1.2

0.7

0.6

0.5

2.8

3.9

1.4

2.5

0.55

0.85

0.7

2.7

6.7 (Japan)

6.8 (Israel)

3.6 (Italy)

2.0 (China)

1.7 (USA)

1.6 (Australia)

8.0 (UK)

Productivity (MT/ha) - Indicates room for improvement


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DownStreamMarketLinkages

Government

Seed,biotech,fertilizer,irrigation

Credit,infrastructure

Heralding Ever Green Revolution & Beyond

PARADIGM SHIFT ..


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GLOBAL PESTICIDE CONSUMPTION

YEAR COMSUPTION GROWTH(Rs Cr) (%)

2003 133550

2004 154700 162005 160120 4

2006 151480 -5

2007 166170 10

2008 172350 4

2009 186790 8

2010 198800 6


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GEOGRAPHICAL PEST MRKT SIZE

REGIONPEST MKT SHARE

(Rs Cr) (%)

EUROPE 61400 31

ASIA 47180 24

NORTH AMERICANFREE TRADEAGREEMENT

43200 22

LATIN AMERICA 37300 19

AFRICA/M EAST 9720 5

TOTAL 198800


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CATEGORY WISE PEST MKT IN INDIAVIS-A-VIS GLOBAL

CATEGORY % MARKET SHARE

WORLD INDIA

HERBICIDE 48 21

FUNGICIDE 24 20

INSECTICIDE 22 55

OTHERS - PGRs 6 4

TOTAL 100 100


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PESTICIDES CONSUMPTION IN DIFF COUNTRIES(ANNUAL AVERAGE)

Country Kg/ha.

Taiwan 17.0

Japan 10.7

Europe 2.5-3.0

USA 3.5-4.5

INDIA 0.480 (g/ha)

India produces 16% of theworlds food grain but consuming < 5%

pesticides used world-wide . Hence, there is good potential of

growth.


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INDIAN PEST INDUSTRY

INDIA IS NET EXPORTER OF PESTICIDES AND 13thLARGEST EXPORTER OF PESTICIDES AND

DISINFECTANTS IN THE WORLD.

INDIA IS CURRENTLY EXPORTING 35 GENERICS TO OVER110 COUNTRIES ACROSS THE GLOBE.


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INDIAN PESTICIDE MARKET

MANUFACTURING STRUCTURE

TECHNICAL GRADER MFG UNITS 125

FORMULATORS 800MULTINATIONALS 10

DISTRIBUTION POINTS 1,46,737


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PESTICIDE SELECTION CRITERIA

Formulators

Market demand

Profit margins

Active ingredient percent in the formulation

Safety and convenience in formulations

Distributors Efficacy range

Handling and storage convenience

High value for investment

Low overhead and high demand

End Users

Efficacy in pest control

Economic return on investment (shifted trend from high price sensitivity)

Easy handling and application of the product

Safety to field workers and consumers


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INDIAN AGRICULTURE

The agriculture sector was noticed to have lost vitality ineconomic contribution and was observed to be on aslower growth trend in 2010. Though there was a declinein the share of agriculture and allied sectors in the GDPfrom 24 per cent in 2001 to the current 14.2 per cent, it is

still considered an essential element of the Indianeconomy contributing 15 percent of the total exports and52 percent of the workforce. The sector needs to grow at8.5 per cent during 2011-12.


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PESTICIDE EXPORTS

INDIA IS IInd LARGEST PRODUCER OF PESTICIDES IN ASIA

INDIAN PESTICIDE INDUSTRY HAS BUILT GOOD REPUTATION AS

RELIABLE PESTICIDE SUPPLIER DURING 2010-11 PESTICIDE EXPORTS STOOD AT Rs 4512 Cr, A GROWTH

OF 25% OVER 2007-08. RISING EXPORTS CAN BE ATTRIBUTED TO THEINDUSTRY FOCUS ON GLOBAL OUTSOURCING AND QUALITY PRODUCTS

PESTICIDE EXPORT DESTINATIONS ARE USA, BRAZIL, THAILAND,SINGAPORE, FRANCE, ARGENTINA, UK, BELGIUM, NETHERLAND etc etc

CATEGORY 2001-02 2010-11INSECTICIDE 1085 3591

FUNGICIDE 68 468

HERBICIDE 44 282

OTHERS - PGRs 18 171

TOTAL 1215 4512


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INDIAN CROP PROTECTION MKT2010-11

RELATIVESHARE

CATEGORY 2008 2009 % GROWTH YR 2010 %GROWTH

2009 2010

INSECTICIDE 4000 4400 10 4400 0 58 55

FUNGICIDE 1350 1350 14 1620 20 18 20

HERBICIDE 1550 1550 19 1690 9 20 21

OTHERS -PGRs

300 300 0 375 25 4 4

TOTAL 6050 7600 12 8085 6 100 100

Market grew by ~ 6 % in 2010 as against 12 % in spite of Severe Drought & Floods in a single year of 2009

Intensive usage of Fungicides in Grapes, Potato, Mango and Late Sown Paddy in Kharif increased the

Fungicides market by 20 %

Demand for Quality Produce and differential prices also driven the growth of Fungicides

Herbicides overall market grew by 9 % :- Post Emergent Soybean Herbicides, Paddy weedicide (Bi-spyribac

Sodium 10 SC - Nominee Gold), usages in Cotton, Chilly and Groundnut drive the growth

Newly launch insecticides viz, Flubendiamide, Coragen, Imida 70 % WG prevents the down slide of

Insecticides total market


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Insecticides

69%

Herbicides

17%

Fungicides

13%

Others

1%Others

4%Herbicides

21%

2004-05

Rs. 3600 Cr

2010-11

Rs. 8085 Cr

Growing @ 11 % CAGR

Insecticides relative Share declined from 69 % to 55 % in 2010

Herbicides & Fungicides Growing consistently over the last few Years

Scarcity & Cost of Labour

Growing concern for Yield/quality

Increased incidence of diseases

INDIAN PESTICIDES MARKET 2010-11

Insecticides 55%

Fungicides20%


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Cotton

23%

Paddy

25%Veg.

14%

Fruits

6%

Pulses

5%

Oilseeds

5%

Wheat

6%

Plantation

s

4%

Others

12%

INDIAN PESTICIDE CONSUMPTION

CROP-WISE 2010-11

Post Emergent Herbicides

Downy Mildew / Late Blight Fungicides / Sheath Blight / Blast

Combination molecules in demand (Sucking Pest + Lepidopteran)

Focus Crops Paddy, Cotton, Soybean,Fruits,Vegetables, Pulses , S/cane

Pest Consumption Rs. 8085 Cr


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PESTICIDE SALES 2010-11

Top 8 companies contribute to 66% of Sales Volume out

of which 5 are MNCs

COMPANY SALE VALUE MS

Rs Crore %BAYER 1050 13SYNGENTA 870 11RALLIS 800 10UPL 660 8

BASF 600 7DUPONT 530 7EXCEL 440 5

DOW 430 5GHARDA 400 5PI INDUST 390 5

INDOFIL 330 5OTHERS 1585 20

TOTAL 8085 100


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INSECTICIDE2009-10 2010-11 % GROWTH

VOL (KL/MT) VALUE (Rs Cr) VOL (KL/MT) VALUE (Rs Cr) VOL VALUEAcephate 75 SP 7500 330 6500 234 -13 -29

Chloropyriphos 20 EC 10000 160 8000 112 -20 -30

Monocrotophos 36 SL 8000 260 8500 238 6 -8

Quinolphos 25 EC 2300 55 2000 40 -13 -28

Trizophos 40 EC 2200 70 1700 47 -23 -34

Imidacloprid 17.8 SL 2700 229 2200 176 -19 -23

Endosulfan 35EC 8000 165 7000 133 -13 -19

Profenophos 50 EC 1500 60 1300 48 -13 -20

Buprofenzin 25 EC 1200 132 1100 105 -8 -21

Chloro 50 + Cyper 5 EC 2200 77 2000 70 -9 -9

Cartap 4 G 35000 179 35000 147 0 -18

Spinosad 45 SC 150 135 80 80 -47 -41

Thiamethoxam 25 WG 300 60 250 45 -17 -25

Clorfenapyr 10 SC 240 29 200 24 -17 -17

Novaluron 10 EC 250 63 200 44 -20 -30

Indoxacarb 14.5 SC 400 90 600 126 50 40

Diafenthiuron 50 WP 90 18 150 30 67 67

Emamectin Benzoate 5 SG 110 74 200 120 82 63

Acetamiprid 20 SP 600 60 750 64 25 6

Abamectin 1.9 EC 20 10 40 18 100 80

TOTAL 2256 1901 -16

% OF TOTAL INSECTICIDES 51 43

MAJOR INSECTICIDES MARKET TREND


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Thank You

NEW INSECTICIDES

2009-10 2010-11 % GROWTH

VOL (KL/MT) VAL (Rs Cr) VOL (KL/MT)VALUE(Rs Cr) VOL VALUE

Acephate 50 + Imidacloprid 1.8 SP 60 3 400 22 567 633Chlorantraniliprole 0.4% GR(Coragen GR) 100 1 350 4 250 300Chlorantraniliprole 18.5 %

(Coragen 20 SC) 10 10 70 70 600 600Fipronil 80 WG (Tempo) 11 11 80 75 627 582Flubendiamide 20 WDG(Takumi) 30 18 80 44 167 144Flubendiamide 39.35 SC(Fame 48 SC) 50 55 130 143 160 160

Imidacloprid 30.5 % SC(Confidor Super 35 EC) 100 23 400 80 300 248

Imidacloprid 70% WG 70 37 180 81 157 119

Indoxacarb 15.8 EC 100 23 300 60 200 161

Metaflumizone 22 SC (Verismo) 60 11 500 80 733 627

Sub - Total (New Insecticides) 192 659 243

% of Total Insecticides 4 15

INSECTICIDES - NEW TREND


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Price drop of ~ 15 - 20 % for all old Insecticides compared to 2009

Generics (OP Compound) Volume down by ~ 20 % due to less acreage & farmers

preference for new chemistries

Launch of Emamectin Benzoate by local Indian Companies brought down the

Price

Due to less BPH Incidence, the Buprofezin Price went down

Flubendiamide & Coragen :- No 1 preference of Pulse farmers

Imida 70% WG :- Replacing Imida Liquid for Sucking pest Control and volume

grew by 150 % (70 > 180 MT) in 2010-11

Cocktail of Emamectin, Novaluron, Thiamethoxam increasing trend due todealers push

New launches added Rs. 450 Cr in 2010-11 and Insecticides market remain same

in the value term (Rs 4400 Cr)

INSECTICIDES TREND


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FUNGICIDE2009-10 2010-11 % GROWTH

VOL(KL/MT)

VALUE(Rs Cr)

VOL(KL/MT)

VALUE(Rs Cr) VOL VALUE

Carbandazim 50 WP 1600 52 1800 52 13 0Mancozeb 75 WP 4000 102 4500 108 13 6Copper Oxychloride 50 WP 1400 44 1500 43 7 -2Hexaconazole 5 EC & SC 3500 98 3800 102 9 4Propiconazole 25% EC 700 53 80 60 -89 13Captan 50 WP 300 8 325 8 8 0

Propineb 70 WP 500 16 60 20 -88 25Fosetyl AL 80 % WP 60 6 70 7 17 17Metiram 70% WDG 200 6 220 5 10 -17Sulphur 80 WDG 4000 36 4500 41 13 14Dinocap 48 EC 40 5 50 6 25 20Myclobutanil 10 WP 35 5 50 7 43 40Thiophanate-Methyl 70 WP 150 8 180 10 20 25Validamycin 3 L 200 6 250 7 25 17Streptocycline 50 13 60 15 20 15Chlorothalonil 75 WP 150 9 190 12 27 33Carbandazim12% + Mancozeb 63% WP 1500 57 1600 60 7 5Cymoxanil 8% + Mancozeb 64 % WP 200 16 250 19 25 19Tricyclazole 75 WP 800 96 1000 115 25 20

TOTAL 636 697 10% OF TOTAL FUNGICIDES 47 43 -8

MAJOR FUNGICIDE MARKET TREND


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NEW FUNGICIDES

2009-10 2010-11 % GROWTH

VOL (KL/MT)VALUE(Rs Cr)

VOL(KL/MT)

VALUE(Rs Cr) VOL VALUE

Azoxystrobin 25 SC 20 12 50 26 150 117

Captan 70 + Hexaconazole 5 WP 100 7 150 10 50 43

Dimethomorph 50% WP 60 15 100 23 67 53

Fenaxadone 16.6% + Cymoxanil22.1 % SC 10 5 70 32 600 540

Fenamidone 10+Mancozeb 60 WG (Sectin) 60 9 100 14 67 56Hexaconazole 4% + Zineb 68% WP (Avtar) 90 5 300 16 233 220

Iprovalicarb 5.5% + Propineb 61% WP(Melody Duo) 40 6 100 14 150 133

Kresoxim-Methyl 44.3% SC (Ergon) 50 15 140 40 180 167

Metiram 55% + Pyraclostrobin 5% WG(Cabrio Top) 70 7 250 22 257 214

Pyraclostrobin 20 WDG (Insignia) 5 2 20 7 300 250

Tebuconazole 2 DS 100 10 150 14 50 40

Tebuconazole 25 EC 50 7 80 10 60 43

Tricyclazole 18 + Mancozeb 62(Maximate) 40 3 100 7 150 133

TOTAL 103 243 133

% OF TOTAL FUNGICIDES 8 16 100

NEW FUNGICIDES MARKET TREND


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Prices of Mancozeb & Carbendazim came down to the level of 2007

o Mancozeb 75 WP :- Rs. 240/Kg in 2010 from Rs. 280

o Carbendazim 50 WP :- Rs. 285/Kg in 2010 from Rs.320

All Fungicides volume grew in 2010-11 ~ 15 - 20 %

Tricyclazole 75 WP is the no 1 fungicide in value term :- Rs 115 Cr

Mixture Fungicides :- Better acceptance for Integrated Resistance Management

Many New Launches are of Mixture (Systemic + Contact) in 2009-10 & 2010-11

o Syngenta launching Tricyclazole 34.2 + Propiconazole 10.7 SC in 2011

Seed Treatment Fungicides :- The Concept is growing

o Carboxin (Vitavax)o Carboxin + Thiram

o Tebuconazole 2 DS (Raxil)

o Pyraclostrobin 5 % WG

FUNGICIDE TREND


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HERBICIDE

2009-10 2010-11 % GROWTH

VOL(KL/MT) VALUE(Rs Cr) VOL(KL/MT) VALUE(Rs Cr) VOL VALUE

Butachlor 50 EC & EW 3500 51 2500 37 -29 -27

Pretilachlor 50 EC & EW 3000 96 3000 96 0 0

Cyhalofop Butyle 10 EC 50 5 80 8 60 60

Clodinofop 15 WP 480 93 560 98 17 5

Sulfosulfuron 75% WDG 27 52 10 19 -63 -63

Metsulfuron Methyl 20 % WP 30 28 35 32 17 14Imazethapyr 10 SL 750 101 1100 149 47 48

Quaizalofop Ethyl 5 EC (Targa Super) 350 35 500 50 43 43Fenoxaprop p-ethyl 9.3% EC (Whip-Super) 350 35 450 44 29 26

Pendimethalin 30 EC 1700 52 2000 62 18 19

Glyphosate 41 SL 4000 129 4000 84 0 -35

Glyphosate 71% WDG 300 18 450 17 50 -6Paraquat 24 SL 2000 46 2500 53 25 15

New Additions--Bispyribac Sodium 10 SC(Nominee Gold) 50 30 140 75 180 150Quaizalofop P-Terfuryl 4.41 EC(Pantera) 10 11 35 32 250 191

TOTAL 782 856 9

% OF TOTAL HERBICIDES 51 51 0

HERBICIDE TREND


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Samples upto 90% are drawn of quality & branded pesticides which aremfd by reputed companies

Due to vested interests, the very purpose of drawing of samples andpunish spurious producers is defeatedThe existing system of sampling is not serving the purpose for whichInsecticide Act 1968 was enacted and introduced

There is no such system which says that The Insecticide Inspector bemade personally accountable , responsible and penalized for sale of poorquality, spurious and duplicate pesticides in his area This is also common to find that the spurious pesticides are sold usingthe name of reputed products and companies - The legal action is againstthe company whose name appears on the label. Hence the industry finds it

difficult to tackle the problem due to dereliction of duty and harassment byInsecticide InspectorsThe amendments in the Insecticides Act to provide for stringentpunishment to the manufacturers of spurious/duplicate pesticides so thatcrop losses can be saved and farmer should not bear monetary loss

CONCERN AREAS - PESTICIDE SAMPLING


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Efforts of Central / State Govt & Industry will result

The corrective measures will enable The industry to increase the production and

availability of effective and qualitypesticides at affordable price

To assist the farmers to protect crop, savecrop losses and increase food productionto 300 to 350 million tons by year 2025

Increase exports


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STATE SALE (Rs Cr) % SHARE

AP 1600 20MAH 1400 17PB 1200 15

KARNTK 600 7MP 500 6

WB 400 5HAR 400 5GUJ 400 5

TN & KERALA 350 4UP 300 4BIH 100 1

OTHERS 585 10TOTAL 8085 100

STATE WISE PESTICIDE SALES

TOP 8 STATES CONSUME 81% PESTICIDES


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STATESALE (Rs

Cr)

MATIX PLAN Ist

YR

%MKT

SHARE

II III IV V

WB 400 4 1.0 6 7 9 10

BIHAR 100 3 3.0 5 7 9 10

EAST UP 120 3 2.5 5 7 9 10

JHARKHAND 40 0.30 0.8 0.50 0.75 1 1

ORISA 70 0.30 0.4 0.50 0.75 1 1

TOTAL 730 10.6 1.45 17 22.5 29 32

PEST SALE PLAN MATIX MKTG ZONE

ESTIMATED PROFIT IN PEST BUSINESS IS ~ 5%

ASSUMING Ist YEAR BUSINESS - Rs 11 CrLIKELY PROFIT - Rs 0.55 Lacs


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Insecticides

Cartap 4 G

Fipronil 0.3 G

Endosulfan 35 EC

Chloropyriphos 20 EC

Cypermethrin 5 + Chloropyriphos 50 EC

Imidacloprid 17.8 SL

Triazophos 40 EC

Fungicides

Cabendazim 12 + Mancozeb 63 WPCarbendazim 50 WP

Mancozeb 75 WP

Metalaxyl 8 + Mancozeb 64

Sulphur 80 WDG

Sulphur 80 WP

Herbicides

2,4 - D 80 WP (Sodium Salt)

Atrazine 50 WP

Clodinofop (Piroxofop-propinyl 15 WP)

Glyphosate 41 SL

Isoproturon 75 WP

Pendimethalin 30 EC

Pretilachlor 50 EC

Sulfosulfuron 75 WDG

PROPOSED PESTICIDE RANGE FOR MATIX


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ROAD AHEADOPPORTUNITIES FOR MATIX

Matix after establishing urea brand AS THE MOSTPREFERRED, then to diversify into pesticides businessLabour shortage farmers switching over to Herbicides tosave their cropSpurious pesticides estimated sale is Rs 3000 Cr which

has huge existing potential to give a quantum jump to salesof quality pesticide products With increased awareness amongst farmers about thelosses due to pests and quality conscious consumers, the

pesticide consumption is growing

pest consumption morethan doubled in the last 6 yearsCollaboration with MNC for new emerging molecule(s) Partnership from introduction stage

Documents

Pesticide Trend Review Prospects