We are less dependent on Chinese raw materials

 We are less dependent on Chinese raw materials

With annual sales expected to top 1,500 crore in 2022–2023, the world's largest producer of agrochemicals, GSP Crop Science Pvt. Ltd., is attempting to reduce its dependency on Chinese raw materials even as it grows into Latin American markets. Bhavesh Shah, the managing director of the Gujarat-based company, discussed his thoughts on how unpredictable rains affected kharif sales as well as the issues related to farmers' illegal usage of pesticides in an interview. Edited passages:

The kharif sales, how were they?

Rainfall during Kharif was problematic (irregular). While there were floods in some locations, there was drought in others. Due to a significant rainfall deficit, August was especially harsh. Everyone in the agrochemicals sector was impacted by this. Soybean, peanuts, and paddy crops have all been hit. Although our volumes increased by 10-15% as a result of the introduction of a new product, our revenues remained flat from the previous year.

Due to the 15-20% decrease in generic product pricing, sales income has stagnated. Due to an accumulation of inventories in international marketplaces, it is an industry-wide occurrence. Prices for raw material producers in China have fallen significantly.

When rainfall are irregular, do farmers use less pesticides?

Farmers reduce their investments and spray less often when they suspect that the crop may not be typical. For instance, cotton is normally a 150-day crop, making it riskier to invest more in it if it doesn't rain within the first 60 days. This does not occur with crops produced using irrigation systems, like chillies. It happens more often with (rain-fed) crops like cotton, soya bean, and peanut.

What do you think the rabi (winter) season will bring?

Rainfall in September will aid in enhancing soil moisture and rabi crop sowing in eastern and central India. Irrigation infrastructure is superior in northern states like Uttar Pradesh, Punjab, and Haryana. We anticipate extensive planting and increased yields of crops including wheat, mustard, and potatoes. Due to insufficient rain, there are some worries for the southern states of Andhra Pradesh, Telangana, and Tamil Nadu. However, we are optimistic that the sector will be able to make up for its kharif losses in the coming winter.

Concern has been raised about pesticide residues in fruits and vegetables as a consequence of inappropriate pesticide application. How are you going to react?

Products that are three to four decades old are the main subject of concern. The dose is smaller and new and evolving chemistry is safe. While certain substances are being examined, the national government has prohibited several others. However, crop protection chemicals are still necessary, for instance to guard against fungal infections in rice. We are attempting to create new, safer goods. In other instances, the situation is dire; for instance, growers may need to spray more regularly to keep black thrips, a pest that feeds on chilli, under control. Farmers that cultivate fruits and vegetables, such as okra, tomato, brinjal, cauliflower, apple, and grapes, get into trouble when they spray pesticides during the pre-harvest period when they are not permitted to. Farmers are always being educated by us. Cereals and oilseeds, on the other hand, are not affected by this.

The Central Insecticides Board is responsible for issuing pesticide licenses and providing use instructions. When a farmer purchases a product for cotton, it sometimes occurs that they use the surplus bottles on a vegetable crop. Off-label usage is what this is, however these situations are uncommon. India now uses a relatively little amount of pesticides compared to China, Brazil, and the US. Utilized properly, agricultural yields may increase dramatically.

How reliant are you on Chinese imports of raw materials?

Our goal is to become more independent while lowering our 60–70% dependency on China for raw material needs. We want to reduce it to about 30%. To increase our production capacity and connect it with the Make-in-India program, we are soliciting money. The expansion of our worldwide reach is another priority; we have established a presence in Brazil, the world's biggest agrochemicals market, and over the next five years, we want to do the same in other Latin American nations.