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The government today asked the agrochemicals industry to invest in research and development (R&D) activities, so that it could remain globally competitive.
"The Indian chemical sector spends 1-2% of their total turnover on R&D as compared to around 5-10% by the chemical industry in the developed countries," said Indrajit Pal, Secretary, Department of Chemicals and Petrochemicals under the Fertiliser Ministry.
He was speaking at the 'Third National Conference on Agrochemicals' here.
Pal noted that the domestic agrochemicals industry currently suffers from low capacity utilisation and low investment in R&D.
Emphasising on promoting the high potency agrochemicals, Pal said: "Globally, there is a growing trend towards the use of low dosage, high potency agrochemicals as against the use of high volume agrochemicals prevalent in India."
Seeking support from the government for development of the agrochemicals sector, Dhanuka Group Managing Director M K Dhanuka said: "The industry's potential could be realised with proper policy and regulatory support, including a check on the menace of spurious pesticides."
The size of agrochemicals industry is estimated to be $3.8 billion in FY11 with exports accounting for 50% of the market.
Over the 12th plan period, the segment is expected to grow at 12-13% a year to reach $7 billion by FY17.
