Gnaneshwar Rajan | December 2, 2022
Agriculture Ministry released a notification on October 25 restricting glyphosate use through Pest Control Operators
A Delhi High Court order, dated November 23, stayed the notification issued by the Ministry of Agriculture and Farmers’ Welfare on the use of glyphosate through pest control operators for three months.
What is the context?
The Ministry of Agriculture and Farmers’ Welfare, in a notification issued on October 25, said that the use of glyphosate, a herbicide used in tea plantations, shall be through pest control operators (PCOs). Bayer CropScience Ltd., a German pesticide company and the biggest in the industry, and Sumitomo Chemical India Ltd., a Japan-based agro-chemical company, said that this notification will have a short-term impact on glyphosate sales, in their second quarter financial results.
What will its impact be on the agrochemical industry?
Bayer Cropscience generates 53 percent of its revenues through glyphosate sales globally. Sumitomo Chemical, expressed similar concerns in its quarterly financial results released on November 8.
“Sales of companies like Bayer CropScience could go back to pre-notification levels,” said an Analyst tracking the sector, on condition of anonymity to The Bottomline. “However, glyphosate prices have reduced,” he said.
Why did the ACFI challenge the order?
Organisations like the Agro Chem Federation of India (ACFI) and CropLife India challenged this notification in the Delhi High Court. The Agro Chem Federation of India, in a written reply to The Bottomline, said that it had submitted various studies to the ministry proving that glyphosate is safe to use—there have been no hazardous cases for over 40 years.
Moreover, there is limited availability of registered and trained PCOs in the country. “Before implementing the order, the availability of PCOs should be ensured by the government at cheaper costs,” said the federation. “The order will impact the sales of the industry as glyphosate is one of the largest-selling herbicides,” the federation added.It also said that the order will negatively impact the tea plantation and non-crop areas.
What next?
Siddharth Gadekar, Analyst at Equirus Securities, said that the industry will push for the complete withdrawal of this notification. “The agro-chemical industry will work to get the entire order revoked,” he said.
The federation said that it had been actively advocating against the implementation of this notification. “We have recommended strengthening the availability of PCOs in terms of the number and knowledge involving institutions like the ICAR [Indian Council of Agriculture Research] before moving ahead,” said ACFI.