Overview of the Pesticide Industry in India

Our agricultural system relies heavily on pesticides, which control weeds, kill insects and stave off invasive microorganisms like bacterial, fungal, viral or pest infestation. Pesticide, though not beneficial for the soil, is needed today because, without it, agriculture will not be possible, and the output will not be able to sustain the country's huge population. Though biopesticide and organic farming are being seen as an alternative, they are not sustainable practices for the scale on which farming is done in the country. In fact, for many small farmers with limited land and agricultural output, pesticide use provides a tool to defend their crops from the attacks of various biological agents that can completely destroy their fields. For our farmers, pesticides protect them from the attacks of pests and plant diseases in addition to saving them labour costs and providing a higher yield. As agriculture is one of the critical links in our country's economy, ensuring optimum yield from the agricultural land and preventing the loss of crops from large-scale infestation becomes essential for the state government (agriculture being a subject under the state list). The central and state governments' policies are designed to ensure the judicious use of pesticides by maintaining a list of banned pesticides and those that can be used. This write-up will explain the legalities in the Pesticide Industry and the process of obtaining various licences and authorisation needed.

The categories of pesticides manufactured today in the country are

• Insecticides –for invasive insects.
• Herbicides –for invasive plants/weeds.
• Rodenticides – to kill rodents (rats & mice)
• Bactericides – to kill bacteria.
• Fungicides – to kill fungi infestation.
• Larvicides- kill larvae of insects.

How do Pesticides work?

Pesticides are chemicals that are used to eliminate or control pests related to agriculture and soil that can damage the crops and livestock of the farmer and reduce the farm’s productivity. Agricultural chemicals  are chemical agents such as herbicides, insecticides and fungicides that are used to control crop damage from organisms like fungi, insects, insect eggs, mites and larvae) or viruses. The pesticide industry is generally classified into various groups based on the biological agent against which the compounds will be used, their chemical nature, mode of entry and mode of action.

Based on organisms- Insecticides, Rodenticides, Fungicides, bactericides, Herbicide.

Based on the mode of entry: Stomach poison, Contact Poison, Systemic poison

Based on the mode of action: Physical poison, Protoplasmic poison, Respiratory poison, Nerve poison

Based on the chemical nature: Inorganic pesticides, Organic pesticides

Legalities associated with Pesticide Industry

The Insecticides Act, 1968 and the Insecticides Rules, 1971 regulate the registration process, manufacture, import, sale, distribution, transport and use of insecticides and pesticides with a view to preventing risk to human beings, animals and any other issues connected isuues with pesticides throughout the country. All insecticides and pesticides must be registered under the Central Insecticides Board & Registration Committee (CIB&RC) before they can be marketed. Based on the above categories, a variety of pesticides can be manufactured. The units, however, have to adhere to the standard operating procedures for operating manufacturing and storage/ sale of pesticides as per the provisions governing the industry

Licences and Authorisation Needed to Start Pesticide Manufacturing in India

Excessive and unauthorised pesticides can cause harmful effects on health. The Central Insecticide Board and Registration Committee under the Ministry of Agriculture and Farmers Welfare are responsible for the registration of any new pesticide formulated under the provisions of the Insecticide Act of 1968. If the applicant/ licensee wants to manufacture, stock, sell, distribute or stock any additional insecticide, he has to apply to the licensing officer for an addition to the licence for each insecticide along with the prescribed fee. The following are the licences that the pesticide industry will need.

Certificate to manufacture Pesticide/ NOC from the Department ofAgriculture and Horticulture

To obtain NOC from the Department, the applicant should be applied on their Letter Pad to the Directorate of Agriculture of the agriculture department of the state along with the following Documents.

• Application for NOC in letterhead of the applicant.
• Land documents in Detail.
• NOC from the Local body.
• NOC from State Pollution Control Board.
• Industry Registration from State Industry Department.
• List of Tech Experts with their Qualification,
• First Aid facility (from the contact Doctor),
• Product ingredients which are to be formulated.
• List of Machinery and Equipment.
• Sketch Map of the area of the Unit.
• Verification report from the concerned District Agricultural Officer

Registration of the Product under the Insecticide Act of 1968

Application for registration of insecticide under the Act must be made in Form III, including the verification portion.

Licence to sell, stock or sale of Pesticides in the country

Application to obtain permission to sell, exhibit for sale or distribute any insecticides must possess or employ a person having a graduate degree in Agricultural Science or Science with chemistry, zoology or botany as the minimum qualification.

Business Registration for Pesticide Industry

DIC is the authority that issues registration to the pesticide industry (MSMEs) in the country. The registration process though not mandatory, becomes essential as it imparts a legal entity to the business and creates a separate legal identity.

• Name, address and e-mail address of the applicant:
• Address of the manufacturing premises:
• Particulars of the fee deposited
• Name of the insecticide and its registration number (copy of the certificate of registration duly certified by the applicant and details whether the registration is provisional or regular.
• Details of full-time expert staff engaged in the manufacture and testing of insecticide

Consent Certificate for Pesticide Industry

No objection Certificate for discharge of trade effluent from the State Pollution Control Board is required by the pesticide manufacturing Unit(technical) (excluding formulation)as it falls under the red category in the list maintained by CPCB. The Pollution NOC will be issued to the industry in 2 stages, i.e. Consent to establish (CTE), issued under the Air Act and the Water Act by the SPCB/PCC. This industrial sector is among the 17 categories of Highly Polluting establishments that generate all sorts of pollution. The documents required for the consent certificate are

• Online Application
• List of names, addresses and contact details of all directors/partners

• Layout Plan of the site
• Schematic diagram of the business
• Details of Water consumption Wastewater balance
• Documents for land ownership
• Project Report from registered CA
• Proof of payment of Consent fee
• Material and safety data sheets

• Environmental Clearance
• List of plant & machinery installed by the Unit.
• Monitoring reports for emissions and effluents from SPCB recognised Labs.

Additional Licences required to start a PesticideIndustry

• Factory's Licence
• Fire NOC

• Tie-up with TSDF facility/ Hazardous Waste Management Authorisation
• BIS Registration

Scope of the Pesticide Industry in India

The total available cultivable land in the country is reducing day by day as a result of increasing urbanisation, deforestation, and land degradation. Agricultural land is expected to reduce further in the coming years. Driven by the rising population, the food demand is expected to increase in the country in the coming years. Pesticides will play a key role in crop security and increasing the average crop yield.

The Government and private entities are trying to increase awareness of the safe and judicious use of pesticides among farmers. Many initiatives to educate farmers on the proper use of pesticides in terms of quantity that must be used, application methodology, and the right chemicals for identified pest problems, etc., are being conducted in various parts of the country. Government initiatives that provide credit facilities to farmers in rural areas work are providing a boost to the pesticide industry. Increasing availability and low-interest rates of farm loans encourage farmers to use pesticides to improve crop yields.

Market overview of the Pesticide Industry

India’s pesticide and crop protection industry is worth about Rs 40,000 crore. Some key market groups and associations in the pesticide industry expect the market to exhibit a CAGR of 7.07% during 2022-2027.

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