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Driving Sustainable Crop Management Insights into the Agrochemicals Industry

Vinodhini Harish

20 Aug 2024

Introduction:

India has around 1.4 billion people, making it one of the most populous countries in the world. This growing population underscores the significance of proper crop management which includes adequate crop protection and other aspects involved. Do you know that an estimated 30-40% of total food production goes to waste due to poor food protection strategies? Post-harvesting, proper crop management, inadequate storage, and inefficient supply chains are essential aspects to be conducted and maintained. Therefore in this article, we have explored different dimensions of the agrochemicals industry and other industries associated with it. If you are interested in exploring the trends of the agrochemicals industry, please don’t waste any minutes. Let’s kick-start the exploration.

Agrochemicals trends that are going to define the future:

Growing sales of biopesticides:

Indian residents and global consumers are discerning their food habits, they are more inclined towards organic food, thus we see there is an increase in the sales of biopesticides, and biostimulants. Biopesticides are replacing the conventional pesticides that are manufactured without much consciousness towards the sustainability of health.

Since the Indian government and other countries are becoming stringent about the regulation concerning pesticides, they are bringing bans on pesticides and other chemicals that are used in the food industry. These factors are boosting the sales of biopesticides.

Integrated pest management:

Integrated Pest Management (IPM) is an environmentally responsible approach that helps with pest management, which also combines varied strategies and practices to minimize the usage of chemical pesticides thereby reducing the risk to human health and the environment. Overall, the program comprises strategies and practices that help in reducing the pest populations and encourage sustainable practices and ones that give long-term prevention of pests and their damage.

The Integrated Pest Management practices involve cultural control which involves altering the farming practices, using mechanical and physical control that includes usage of barriers, traps, and manual removals. The overall idea is to eliminate the chemicals in crop protection practices.

The practices generally take the pest control either biological control or cultural control. Biological control involves using natural predators, parasites, and pathogens to control pest populations. For instance, introducing ladybugs to control aphid populations.

Likewise, cultural control involves practices such as crop rotation, planting pest-resistant crop varieties and timing planting that eliminates the risk of exposing the crops in peak pest periods.

The IPM programs are structured plans and initiatives that are executed by private companies or governmental agencies and are stringently aligned with guidelines provided by them. They are backed with resources, and tools, required for the effective management who manages and pest control professionals, farmers and gardeners.

The IPM principles, techniques and practices are developed after conducting research and after discovering natural predators for specific pests or after developing pest-resistant crop varieties.

However, IPM practices put the usage of chemical pesticides as a last resort, even though selecting the ones that are least impacting on the non-target organisms which are beneficiary for the crops and the environment.

The strategies also involve establishing a pest population threshold that could potentially trigger management actions. Otherwise, the idea is not to take any unnecessary interventions during the growth.

The strategies also include environmental management which is specifically changing the environment and making it less conducive to pest development.

Shares resources and competition: The Agrochemicals industry and pharmaceutical industry share the same resources, raw materials and research materials. Therefore the competitive range is pretty higher as they both drive up the costs and affect the inputs of the agrochemical production.

Regulatory impact: governments of several countries have laid significant regulations and frameworks which also spill over into the agrochemical sector, therefore the compliance costs for the agrochemical manufacturers are affected as well.

Digital and precision farming:

The rapid evolution of digital farming involves the usage of advanced technologies such as leveraging data, automation, precise interventions in crop management and others.

Some of the successful digital farming techniques include:

Farm management software solutions to plan, monitor and analyze farm activities in real time. These platforms help in integrating other data such as weather forecasts, soil sensors and satellite imagery to aid proper management.
IoT devices and sensors to measure different variables such as soil moisture, temperature, humidity and other factors. These sensors provide real-time data and monitor field conditions.
Drones and aerial imaging to identify problematic areas and give proper attention.
AI and machine learning to analyze data to predict weather patterns, crop diseases and yield potential.
Blockchain technology to enhance transparency and traceability in the supply chain.

Pressures of maintaining sustainability:

Agrochemical industries are also facing the pressures of maintaining sustainability practices and adopting green technologies. A significant investment is required for the adoption and specifically for alternative product development.

Reformulating products: Agrochemical firms are adopting strategies and reformulating their products to reduce or eliminate harmful ingredients. This involves the reduction of persistent organic pollutants and replacing hazardous substances with safer materials.

Case studies from other parts of the globe:

Syngenta is a leading agrochemical and seed company which is renowned for its innovation in the agricultural sector, crop protection and seed development. It is headquartered in Basel, Switzerland, operating in over 90 countries across the globe. Although the company has introduced significant crop protection products and is considered one of the major suppliers of seeds for several countries, they are known for their digital agriculture as well. They have invested in digital tools which help farmers and agricultural professionals optimize the use of inputs involved in farming such as water, fertilizers, and agrochemicals.

One of their product, Paraquat is considered one of the most popular herbicides at the international level, however has been linked to significant health risks due to the toxic materials used for its manufacturing. Therefore they have been facing regulatory pressures and they were in search of safer alternatives to alter the formulation. Now, Syngenta reformulated the paraquat product and has reduced its toxicity while maintaining its efficacy.

The reformulated product is named Gramoxone SL2.0. The product has a higher concentration of active ingredients with a different formula which features built-in safety mechanisms like blue dye. This helps the farmers identify treated areas in the crips and a stanching agent that deters accidental ingestion.

The reformulation has helped it sustain itself in the market despite stringent regulations as they have reduced the risks to the users and the environment.

Bayer moved away from Neonicotinoids:

Bayer is a global life sciences company that is based in Germany, known for its over-the-counter health care products. They have introduced well-known brands like Aspirin, Claritin, and Alka-Seltzer. They have been facing severe scrutiny due to the harmful effects caused by the toxicity of neonicotinoids. Several countries banned these chemicals. Therefore, the company were focused on developing safer alternatives to neonicotinoids. Then after research, the company developed Flupyradifurone, an insecticide under the brand Sivanto®. This product is working great on its efficiency in controlling a wide range of pests and imposes a significantly lower risk to the pollinators compared to Neonicotinoids.

Now, the product is highly regarded by several countries, as they have very little impact on non-target species including bees.

Impact of the agrochemicals industry over other industries:

Oil industry:

The raw materials of the agrochemicals industry are derived from petroleum-based products. For instance, fertilizers, and pesticides are manufactured from oil-based raw materials. Therefore the fluctuations in the oil prices directly affect the manufacturing of agrochemicals and lead to an increase in the prices of them, this creates a huge impact for the farmers and potentially reduces the usage of these effective agrochemicals.

Energy costs linked with the oil industry:

The energy costs also directly affect the manufacturing of agrochemicals. The agrochemical industry is highly energy-sensitive. Therefore, increasing energy costs could lead to increasing production expenses and thereby affect the overall pricing and availability of agrochemicals.

Chemical industry:

The supply chain disruptions in the chemical industry affect the growth of the agrochemicals industry, as it relies on the chemical industry for various inputs. The regulatory changes, environmental concerns, and global supply issues affect the availability and cost of these inputs and thereby affect the growth of the agrochemical industry.

Innovation and Research and Development in the Chemical Industry: The advancements in the chemical industry have led to the manufacturing of effective agrochemical products and thereby cut down the production costs and agrochemicals wastage. However, on the contrary, the decline or slowdowns of the chemical industry leads to delays the innovation in the agrochemicals industry.

Pharmaceutical industry:

Growing and cultivating specialized crops “Pharmaceutical crops”

The growing demand for “Pharmaceutical crops” in the modern agricultural sector is impacting both the pharmaceutical industry and the agrochemicals industry. Now, to get into the basics, pharmaceuticals are the products that are used in the medical diagnosis, treatment, and prevention of diseases. Now, pharmaceutical crops are the plants that are cultivated and utilized for the extraction and processing of bioactive pharmaceutical ingredients. These substances are used for therapeutic medical procedures, and taken into several stages as they are put into isolation, purification processes, chemically and structurally characterized, then they are set to pharmacologically screened and toxicologically evaluated.

Since the yields are considerably lower than the commercial crops, however these plants when grown in appropriate conditions and harvested using appropriate techniques and stored appropriately these plants can be very profitable.

Cultivating pharmaceutical plants can be a viable option for the intention to diversify the agricultural system, but good care is required to select the most appropriate pharmaceutical crops for individual farm conditions.

Role of the agrochemicals industry in the nation:

Agrochemicals play a crucial role in the country’s agricultural sector which is considered one of the leading contributors to the Indian economy. Not only does it contribute to the Indian economy, but it also supports the livelihood of a majority of the Indian population. No doubt why India is considered a significant competitor in the global agrochemicals industry. Moreover, agrochemicals have become an integral part of since they enhance agricultural productivity, ensure food security and support the rural economic conditions.

Enhancing crop yields: Pesticides and herbicides come in different types and have helped farmers control the pests affecting crop production. Thereby agrochemicals help the farmers maximize the output from the available land and support food security.

Since India is considered to have limited arable land for the given population, improving productivity per hectare is very critical. Thus the role of agrochemicals is highly important to support food security.

For instance, cotton is one of the major cash crops in India and they are highly susceptible to pests such as bullworm. However, farmers of Maharashtra were facing significant yield losses due to pest infestations that takes the situation to severe financial strain and lower productivity.

Thus agrochemical manufacturers have come up with synthetic insecticides like neonicotinoids that help to deal the pests like bullworms and control their population. In addition to these, the farmers incorporate integrated pest management practices, combining chemical pesticides with biological control methods, which helped in the promotion to enhance crop protection.

This has led to an increase in cotton yields, farmers reported that the yields increased up to 50% which helped in higher incomes and improved livelihood.
Supporting small and marginal farmers:

India possesses a significant portion of the farming community that consists of small and marginal farmers. These farmers are dependent on agrochemicals to protect their crops and thereby income stability. Therefore the goal is to produce agrochemical products that are both affordable and accessible for these farmers and allow them to increase their productivity. Since these farmers are already facing significant challenges in farming, the increasing price of agrochemical products could be a burden for them.

However several companies in the agrochemical sector are coming forth to provide knowledge and training to these farmers to support them. Thereby they are helping them in the effective and proper usage of these products. This helps in better outcomes.
Driving economic growth:

The agrochemical industry is helping India’s economy through exports and employment generation. The investments in the rural infrastructure and other aspects are made possible through the development of the agrochemical industry.

In addition to these, foreign investments, collaborations and other aspects like driving innovation and economic development are helping the agricultural sector and thereby impacting the overall economic growth.
R&D and innovation:

Like every industry, the Agrochemicals industry also requires R&D and innovation to come up with creative solutions. There are specific challenges in the industry which could be addressed with innovation and R&D. For instance, consider challenges such as resistance to pests and diseases, changing climatic conditions, and sustainable farming practices are some of the tougher challenges in the industry, this requires new techniques, formulations and strategies to beat them.

Now agrochemicals with modern formulations help to bridge the gap between the potential and actual yields, making the country self-sufficient in producing crops like rice, wheat and pulses.

Wrapping up:

The Agrochemicals industry continues to play an important role in modern agriculture thereby enabling farmers and agricultural professionals to enhance crop productivity. The industry also looking for ways to integrate modern techniques, and strategies such as precision agriculture, biotechnology, sustainable practices as discussed in the article, and others to meet the global food demand while not disturbing the planet. Due to the increasing demand for food protection and security measures, modern agrochemical solutions are only leading the industry to further developments. Overall, the ripple effect of the growth of the industry extends beyond agriculture impacting the industries listed in the article and other industries such as food processing, packaging, and so on.