Page 126 - CW E-Magazine (22-10-2024)

Point of View

Fermentation-derived products and pheromones, for example, can be expensive to manufacture, reducing the economic incentive for buyers
to replace conventional products. But fermentation costs, in particular, are falling, benefitting from better fundamental understanding of the
biological processes underpinning them, the ability to genetically alter microorganisms to make them more productive, as also economies
of scale of manufacture.

The economics on the field can also be challenging when applying biologicals. Typically, in any crop protection only a small percentage
of the sprayed chemical reaches the target (e.g., pest or disease) and most (more than 98%) is wasted. The introduction of a new biological
for such foliar application is unlikely to be favourable from a cost standpoint, and application innovations are crucial for wider adoption. What
complicates matters is that biologicals – especially biofungicides – typically have short shelf-life.

It is also important to note that biologicals, despite generally having a low-risk potential for human health or to the environment, are
not necessarily harmless. Their potential for adverse effects on both counts may derive from their mode of action, allergic sensitization,
secondary metabolites and formulation inerts.

In a world where climate change is driving unpredictable weather patterns, at times leading to rapid growth in pest populations (e.g., massive
locust attacks), experts have cautioned that chemical sprays remain the most effective and immediate solution on hand, not biologicals.

Market trends
Biologicals are not new. Commercial bacillus thuringiensis (Bt)-based products have been around since the 1960s and pheromones were
introduced in the 1970s. But only recently has their popularity increased.
Many of the first generation of biologicals, brought to market in the 1990s and early 2000s, were marketed with considerable hype
as ‘cure-alls’ but lacked data to back up claims. Besides, there was little emphasis on grower education on how to best use them. All this
served to give the category a bad rap. Fortunately, that has changed, and the newer generation of products are based on sound research,
have better (and stable) quality, and, very importantly, proven their efficacy in wide-ranging field trials.
An important market driver is regulatory pressure on chemical crop protection, which is intensifying especially in the developed world.
This is particularly true in Europe, where over half of the chemical products that existed in the 1990s have been withdrawn from the market.
In France, for example, the government has a target of reducing chemical crop protection usage by 50% by 2025 and encouraging use of
biologicals. At the same time, the pace of innovation into newer chemical entities with novel or more effective modes of action against
pests, has been declining. This has created gaps in the market, which some biologicals have partially filled.

In anticipation of the business opportunity, leading crop protection companies have been investing in development of high-quality
biologicals for over a decade. Venture capital funds have also returned billions of dollars to investors through investment in this space.

According to CropLife, an industry lobby group, the global market for biologicals was estimated to be $6.6-bn in 2022 and projected
to more than double to reach $13.7-bn by 2027. While impressive, this is still small change compared to the current $240-bn market for
conventional crop protection and chemical fertilisers.
India at a nascent stage
In India, the adoption of biologicals is still at a nascent stage, for all of the reasons cited earlier, compounded by poor awareness of
products and the complexities associated with their use. The regulatory system is also not making it any easier and does not distinguish
between chemical and biological alternatives when it comes to approvals. Furthermore, there are restrictions on imports of formulations,
which some sections of the industry feel is depriving farmers of novel solutions, while others feel is needed to encourage local innovation
and manufacturing for self-sufficiency. There is merit on both sides, and a judicious balance needs to be struck.
Complementary solutions
Biologicals are not going to replace chemical crop protection products. Instead, the two approaches to disease and pest management
complement each other when used in an effective IPM strategy. Together, they provide a more holistic approach for growers to maximize
crop yields, improve quality and minimize pest resistance.

India’s market for biologicals will expand – as it will in the rest of the world. But there is work to be done here to enable this to happen
at a faster pace – by regulators, industry participants and farmers.
Ravi Raghavan

126 Chemical Weekly October 22, 2024

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