A proposed ban on paraquat dichloride is unlikely to affect India’s agrochemical industry uniformly, with large diversified companies better placed to absorb the loss of one herbicide while smaller formulators, specialised marketers and importers could face a stronger impact, according to an exposure analysis by Dr Donthi Narasimha Reddy.
The analysis report, titled “Who Loses if Paraquat Dichloride Is Banned in India? An Exposure Analysis of the Domestic Agrochemical Industry,” examines the likely commercial impact of the proposed ban across the agrochemical supply chain.
The draft Banning of Paraquat Dichloride Order, 2026, published by the Ministry of Agriculture and Farmers Welfare on July 13, proposes prohibiting the import, manufacture, sale, transport, distribution and use of the herbicide under the Insecticides Act, 1968.
Dr Reddy noted that while the proposed ban has primarily been examined from a public-health perspective, its commercial implications could extend across the supply chain, from overseas manufacturers and Indian importers to formulators, distributors and farmers.
Industry estimates put the Indian paraquat market at around `1,500 crore. However, determining the exposure of individual companies remains difficult as listed agrochemical firms generally disclose revenues by product segments such as herbicides, insecticides and fungicides rather than by individual molecules. Dr Reddy’s analysis suggests that the impact would be concentrated among a relatively small group of players rather than spread evenly across the industry.
Among listed companies, UPL is likely to have the largest absolute paraquat exposure because of its scale and presence in non-selective herbicides. However, Dr Reddy assessed that the impact on its overall business would remain limited because of its diversified portfolio and the size of its operations. Dhanuka Agritech is another significant domestic marketer, selling paraquat under the Ozone 24% SL brand. Dr Reddy pointed out that herbicides form a substantial part of its business, but its portfolio includes several other products, meaning the loss of paraquat sales would represent only a portion of its overall herbicide revenues.
The impact on Rallis India and Coromandel International is expected to be smaller at the consolidated level because paraquat constitutes only a limited component of their broader businesses. Coromandel, in particular, has much larger exposure to fertilisers, the analysis noted. The sharper proportional impact could instead be felt by smaller and less diversified companies. Crystal Crop Protection, which acquired the Gramoxone trademark for India from Syngenta in 2023, could face significant exposure as the marketer of one of the country’s best-known paraquat brands, Dr Reddy observed.
The proposed ban could also affect companies outside India because the country is heavily dependent on imports of technical-grade paraquat, the active ingredient used by domestic formulators.
Trade-shipment data indicates that Taiwan and China account for most of India’s technical paraquat imports. Dr Reddy explained that Indian companies consequently operate largely as formulators, brand owners and distributors rather than manufacturers of the underlying molecule. A complete ban would therefore shift part of the immediate upstream impact to overseas technical-grade manufacturers.
There is also a potential inventory risk for Indian importers. Dr Reddy noted reports of increased procurement ahead of the proposed regulatory action, suggesting that some companies may have built up stocks in anticipation of restrictions.
If the final order does not provide an adequate transition or sell-through period, such inventory could become difficult to sell legally. The draft’s proposed prohibition on manufacture could have implications beyond the domestic market as well. Unless the final order provides an exemption, Indian companies manufacturing paraquat formulations for export could also lose that business, the analysis noted.
A government figure of 1,503 manufacturing units holding licences related to paraquat has attracted considerable attention. However, Dr Reddy cautioned that the number does not represent 1,503 independent manufacturers of technical-grade paraquat.
India’s pesticide licensing framework covers activities including technical manufacturing, formulation, repacking and re-labelling. The actual number of companies capable of synthesising technical paraquat is understood to be far smaller, while most licensees are formulators.