and applications of green chemistry

40 Pages·02.61 MB·English

Knowledge Paper on
SAFE & JUDICIOUS USE OF AGROCHEMICALS
AND APPLICATIONS OF GREEN CHEMISTRY
March, 2014
Knowledge and Strategy Partner
Sidharth Birla
President
Message
Knowledge and Strategy Partner
Sidharth Birla
President
Message
Knowledge and Strategy Partner
Acknowledgments
Preface
We deeply acknowledge the contributions of Industry leaders and experts from following
companies who have shared their experiences with us in the course of preparation of this
report.
Manish Panchal Charu Kapoor P S Singh
Practice Head - Chemical & Energy Engagement Manager - Chemicals Head- Chemicals & Petrochemicals
Our sincere thanks to industry experts from:
Tata Strategic Management Group Tata Strategic Management Group FICCI
[email protected] [email protected] [email protected]
vDow Agrosciences India Pvt. Ltd.
vMonsanto India Ltd. Federation of Indian Chambers of Commerce & Industry (FICCI) & TATA Strategic
Management Group (TSMG) have been regularly tracking the trends in the agrochemical
vRallis India Ltd.
industry and supporting companies, both big and small, across various verticals to achieve
vDuPont India Pvt. Ltd. business excellence. The same knowledge and experience gives us an additional advantage
to realize this report.
The rising population, increasing food demand, shrinking agriculture land area and loss of
crops due to the attack of pests and diseases have made the crop protection chemicals all the
more important in today's world. However there is an increasing concern about the
detrimental effects of the crop protection chemicals on human health. Excessive and non-
judicious use of pesticides can result in several health problems. Apart from the direct
exposure to the farmers, the crop protection chemicals can indirectly impact human beings
through food consumption and inhalation. This signifies the need to educate the end users
and inspired us to help create awareness on safe and judicious use of crop protection
chemicals through this report.
The unfavorable effects of pesticides on environment are also severe as many pesticides are
non-biodegradable. If coupled with inefficient manufacturing processes, their harmful
effects are increased several fold. To avoid further damage to our eco-system, it is essential
that companies producing crop protection products evaluate possibilities to move to
"green" processes and products. Through this report we have attempted to highlight
possible strategies to implement green chemistry practices for crop protection companies.
We sincerely thank all industry leaders whose valuable inputs have helped in building this
report. As always it was an insightful experience for the team to materialize this report. We
hope it acts as a guiding light both for the players and the consumers of crop protection
products.
Knowledge and Strategy Partner Knowledge and Strategy Partner
Acknowledgments
Preface
We deeply acknowledge the contributions of Industry leaders and experts from following
companies who have shared their experiences with us in the course of preparation of this
report.
Manish Panchal Charu Kapoor P S Singh
Practice Head - Chemical & Energy Engagement Manager - Chemicals Head- Chemicals & Petrochemicals
Our sincere thanks to industry experts from:
Tata Strategic Management Group Tata Strategic Management Group FICCI
[email protected] [email protected] [email protected]
vDow Agrosciences India Pvt. Ltd.
vMonsanto India Ltd. Federation of Indian Chambers of Commerce & Industry (FICCI) & TATA Strategic
Management Group (TSMG) have been regularly tracking the trends in the agrochemical
vRallis India Ltd.
industry and supporting companies, both big and small, across various verticals to achieve
vDuPont India Pvt. Ltd. business excellence. The same knowledge and experience gives us an additional advantage
to realize this report.
The rising population, increasing food demand, shrinking agriculture land area and loss of
crops due to the attack of pests and diseases have made the crop protection chemicals all the
more important in today's world. However there is an increasing concern about the
detrimental effects of the crop protection chemicals on human health. Excessive and non-
judicious use of pesticides can result in several health problems. Apart from the direct
exposure to the farmers, the crop protection chemicals can indirectly impact human beings
through food consumption and inhalation. This signifies the need to educate the end users
and inspired us to help create awareness on safe and judicious use of crop protection
chemicals through this report.
The unfavorable effects of pesticides on environment are also severe as many pesticides are
non-biodegradable. If coupled with inefficient manufacturing processes, their harmful
effects are increased several fold. To avoid further damage to our eco-system, it is essential
that companies producing crop protection products evaluate possibilities to move to
"green" processes and products. Through this report we have attempted to highlight
possible strategies to implement green chemistry practices for crop protection companies.
We sincerely thank all industry leaders whose valuable inputs have helped in building this
report. As always it was an insightful experience for the team to materialize this report. We
hope it acts as a guiding light both for the players and the consumers of crop protection
products.
Knowledge and Strategy Partner Knowledge and Strategy Partner
TABLE OF CONTENT
1 Executive Summary ...................................................1
2 Introduction.........................................................3
3 Indian market overview ...............................................6
lIndustry structure and Competitive landscape............................7
lIndian market scenario ..............................................8
lDomestic consumption ..............................................8
lDistribution of domestic crop protection market by Product category........9
lState wise distribution of crop protection market........................10
lDistribution and Sales Channel .......................................10
lThe shift towards Green .............................................11
4 Challenges faced by the Indian Crop Protection Industry ....................12
5 Opportunities and Growth Drivers for Indian Crop Protection Market .........14
6 Green Chemistry in Agrochemical Sector .................................17
lGreen Chemistry ...................................................17
lGreen Chemistry Implementation Strategies ............................17
lShort Term Strategies...............................................18
lMedium Term Strategies ............................................19
lLong Term Strategies ...............................................21
lJudicious use of Agrochemicals.......................................24
7 The Way Ahead .....................................................27
8 References.........................................................29
9 About Tata Strategic .................................................30
lTata Strategic Contacts..............................................31
10 About FICCI.........................................................32
Knowledge and Strategy Partner Knowledge and Strategy Partner
TABLE OF CONTENT
1 Executive Summary ...................................................1
2 Introduction.........................................................3
3 Indian market overview ...............................................6
lIndustry structure and Competitive landscape............................7
lIndian market scenario ..............................................8
lDomestic consumption ..............................................8
lDistribution of domestic crop protection market by Product category........9
lState wise distribution of crop protection market........................10
lDistribution and Sales Channel .......................................10
lThe shift towards Green .............................................11
4 Challenges faced by the Indian Crop Protection Industry ....................12
5 Opportunities and Growth Drivers for Indian Crop Protection Market .........14
6 Green Chemistry in Agrochemical Sector .................................17
lGreen Chemistry ...................................................17
lGreen Chemistry Implementation Strategies ............................17
lShort Term Strategies...............................................18
lMedium Term Strategies ............................................19
lLong Term Strategies ...............................................21
lJudicious use of Agrochemicals.......................................24
7 The Way Ahead .....................................................27
8 References.........................................................29
9 About Tata Strategic .................................................30
lTata Strategic Contacts..............................................31
10 About FICCI.........................................................32
Knowledge and Strategy Partner Knowledge and Strategy Partner
Executive Summary
This report is developed by Tata Strategic Management Group with support of FICCI as
FIGURE OF CONTENT the knowledge paper for the "Safer and Judicious use of Agrochemicals and applications
of Green Chemistry 2014" seminar.
The Indian crop protection industry currently stands at USD 4.1 billion and is expected to
Figure 1: Losses caused by different pests (%) .................................3
grow at a CAGR of 12% for the next five years. Insecticides is the largest sub-segment of
Figure 2: Indian Crop Protection Market, FY13 (USD Bn).........................6 agrochemicals with 60% market share whereas herbicides with 16% market share is the
fastest growing product segment in India. Andhra Pradesh, Maharashtra and Punjab are
Figure 3: Key Industry players, India.........................................8
the leading consumers of pesticides accounting for ~50% of overall consumption. Going
Figure 4: Per capita consumption of pesticides (Kg/ ha), FY13 ....................8
ahead, opportunities for the Indian crop protection industry will come in the form of
Figure 5: Crop protection market split, India, FY13 .............................9 exports, growth in generic products, product portfolio expansion, and growth in
Figure 6: State wise pesticides consumption, FY13 ............................10 herbicides and fungicides.
Figure 7: Agrochemicals going off-patent, 2014-2020 (USD billion)................14 However, the detrimental impact of the excessive and non-judicious pesticide
Figure 8: Arable land per capita (ha)........................................15 consumption on the human health and environment has become a critical issue for the
agrochemical companies and society at large. Apart from contaminating the
Figure 9: Yield per hectare (million tonnes per hectare) ........................16
environment (air, water and soil), agrochemicals also adversely impact the human and
Figure 10: Green Chemistry Implementation Strategies.........................17
animal health through direct and indirect exposure when used improperly. The rise in
Figure 11: Advantages of Microwave Chemistry ...............................21 cancer affected patients in Punjab stresses that safe and judicious use of pesticides and
green chemistry manufacturing practices are the need of the hour.
Figure 12: Global bio-pesticides market......................................22
Figure 13: The Way Ahead ................................................28 Judicious use of pesticides involves using the right product at correct dosage and with
appropriate application methodology to ensure minimal impact on non-target species. It
is not only the responsibility of the government but also moral responsibility of
manufacturers' to work closely with the farmers to educate them on safe and judicious
use of pesticides.
Crop protection products manufacturers, on the other hand, should perform a process
and environmental impact audit of their existing products and adopt green chemistry
practices. In the short term companies can implement zero discharge solutions, adopt
COD reduction techniques and develop collaborative platforms. In the medium term,
companies can implement solvent recovery practice, explore alternate greener solvents,
biocatalysts and microwave chemistry technology. Over the long term, companies need
1
Knowledge and Strategy Partner Knowledge and Strategy Partner
Executive Summary
This report is developed by Tata Strategic Management Group with support of FICCI as
FIGURE OF CONTENT the knowledge paper for the "Safer and Judicious use of Agrochemicals and applications
of Green Chemistry 2014" seminar.
The Indian crop protection industry currently stands at USD 4.1 billion and is expected to
Figure 1: Losses caused by different pests (%) .................................3
grow at a CAGR of 12% for the next five years. Insecticides is the largest sub-segment of
Figure 2: Indian Crop Protection Market, FY13 (USD Bn).........................6 agrochemicals with 60% market share whereas herbicides with 16% market share is the
fastest growing product segment in India. Andhra Pradesh, Maharashtra and Punjab are
Figure 3: Key Industry players, India.........................................8
the leading consumers of pesticides accounting for ~50% of overall consumption. Going
Figure 4: Per capita consumption of pesticides (Kg/ ha), FY13 ....................8
ahead, opportunities for the Indian crop protection industry will come in the form of
Figure 5: Crop protection market split, India, FY13 .............................9 exports, growth in generic products, product portfolio expansion, and growth in
Figure 6: State wise pesticides consumption, FY13 ............................10 herbicides and fungicides.
Figure 7: Agrochemicals going off-patent, 2014-2020 (USD billion)................14 However, the detrimental impact of the excessive and non-judicious pesticide
Figure 8: Arable land per capita (ha)........................................15 consumption on the human health and environment has become a critical issue for the
agrochemical companies and society at large. Apart from contaminating the
Figure 9: Yield per hectare (million tonnes per hectare) ........................16
environment (air, water and soil), agrochemicals also adversely impact the human and
Figure 10: Green Chemistry Implementation Strategies.........................17
animal health through direct and indirect exposure when used improperly. The rise in
Figure 11: Advantages of Microwave Chemistry ...............................21 cancer affected patients in Punjab stresses that safe and judicious use of pesticides and
green chemistry manufacturing practices are the need of the hour.
Figure 12: Global bio-pesticides market......................................22
Figure 13: The Way Ahead ................................................28 Judicious use of pesticides involves using the right product at correct dosage and with
appropriate application methodology to ensure minimal impact on non-target species. It
is not only the responsibility of the government but also moral responsibility of
manufacturers' to work closely with the farmers to educate them on safe and judicious
use of pesticides.
Crop protection products manufacturers, on the other hand, should perform a process
and environmental impact audit of their existing products and adopt green chemistry
practices. In the short term companies can implement zero discharge solutions, adopt
COD reduction techniques and develop collaborative platforms. In the medium term,
companies can implement solvent recovery practice, explore alternate greener solvents,
biocatalysts and microwave chemistry technology. Over the long term, companies need
1
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to focus on developing bio-pesticides, implement process innovation to achieve a better Introduction
material balance and build symbiotic relationships with key stake holders.
Going ahead, the agrochemical industry should focus on developing new processes and
products with sustainability as the core principle. This requires developing a collaborative
The world's population currently stands at 7 billion and is estimated to rise to 9.3 billion by
platform in which the academia, government and regulatory bodies, manufacturers and
2050. This will require the global food production to be increased by 70% over the same
farmers come together and promote and execute strategies for implementing judicious time period in order to meet the demand. While there is a need to grow more food to
use of pesticides and green chemistry strategies in the agrochemical sector. meet future demand, the world currently is facing challenges of food shortage,
increasing malnutrition as one seventh of world's population suffers from the same, and
rising food inflation. To add to the problems, 25% to 40% of world crop output is lost due to
the attack of pests, weeds and diseases. According to industry estimates, for each acre of
land there are 50 to 300 million buried weeds and a crops and plants have to compete
with 30,000 species of weeds, 3,000 species of nematodes and 100,000 species of plant
eating insects before the crop produce can finally reach the end users. To minimize these
losses and to enhance yields it is essential to use crop protection chemicals.
Crop protection doesn't just protect; it enriches as well. It increases crop productivity by
20-50%, which helps mitigate the 20-40% of crop loss from pest attacks. The industry is
estimated to reduce overall potential pre-harvest wheat loss of 50% to an actual loss of
29%. Some 20% of the entire world's agricultural production would be lost to post-harvest
pest attacks if it were not for crop protection chemicals. The result is that crop protection
makes excellent financial sense; farmers get back 14.5 their investments in
agrochemicals, which allows them to invest in seeds and on other farming implements to
grow more and better crops.
Figure 1 Losses caused by different pests (%)
Others, 8%
Rodents, 6%
Weeds, 33%
Diseases, 26%
Insects, 26%
Source: Industry Reports, Analysis by Tata Strategic
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