Shri S.S. Dhindsa, Minister for Chemicals and
Fertilizers has said that the Agro-Chemical Industry have shown
impressive export growth over the last five years exceeding Rs.1350
crores by 2001-02 despite steep competition and constraints faced
by the India Pesticides industry in the overseas market. He said
India is now the largest manufacturer of basic pesticides among
the South Asian and African countries with a total installed capacity
of over 1.28 lac MT and meeting 95 per cent of the domestic demands
of pesticides.
Speaking on the occasion of the 39th
Annual Session of the Pesticides Association of India here today
Shri Dhindsa said that the transition from a protected regime
to a delicensed, liberalised era has exposed the industry to international
competition resulting in declining prices and profit margins.
In addition, the industry is faced with low investments in R&D,
few proprietory molecules, few product patents, large idle capacity,
intense competition, small scale operations and price under cutting.
Besides, due to dry spell and lower rainfall last year the industry
has to contend with lower domestic demand for pesticides. Pesticides
industry will have to make concerted efforts to increase the export
of pesticides and capture higher share in the world market, he
added.
Shri Dhindsa said that the Indian Pesticides
Industry may see a major shake out on account of mergers taking
place between Multi National Companies. Besides, manufacturing
standards are likely to be implemented more rigorously which would
ensure that only plants with recognized GMP continue to exist.
The movement towards Integrated Pest Management (IMP) will grow
and this may well result in the introduction of new bio-pesticides.
The issue of monitoring of pesticide residues in food and agricultural
commodities will occupy an important position both in domestic
sales and export of agro-based products, he said.
Referring to the issue of manufacture and
sale of spurious/duplicate pesticides Shri Dhindsa said that this
not only affects the farmers but also affects the reputed manufacturing
companies. He said Central Government have notified insecticide
inspectors to work in addition to the inspectors notified by the
State Governments to ensure flow of only quality pesticides to
the farmer. However, internal vigilance and monitoring by the
industry is the real answer to this problem, he said. He assured
the industry to look into the problems being faced by the Pesticides
industries like delay in securing registration from Central Insecticides
Board, environmental clearance, high incidence of excise duty
and high rate of sales tax in certain States and inadequacy of
testing facilities in laboratories of certain States.
