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.