This Annual Report reflects an eventful financial year 2020-21 in the journey of theDhanuka Agritech Ltd where we as a team has once again stood against adversities andshowed great commitment to drive the success of our company. I would like to sincerelythank our employees senior management team distributors farmers and stakeholders fortheir dedication to push forward the agro industry. Through the unprecedented times ofCOVID-19 pandemic Dhanuka quickly adapted its plans and focused on what it can controland create through digital and supply chain reach in the continued global economicvolatility. Dhanuka after having gained almost 125% revenue in the last year remains infavourable position. Prospects of the company stays firm with good Rabi season sowingfull reservoir levels and improved farmer income. Rise in input prices can poses somechallenges in the future and it seems to be watchful. However the company had dealt witha moderate Q3 performance and thereby excellent performance in Q4 will help to liftspirits. Some impact from prolonged rainfall especially in south India led tocompanys moderate revenue growth in Q3. The two cyclones in November 2020 haveresulted in low consumption of agrochemicals. Further herbicide and fungicide categoriescontinued to do good performance. Some of the focused products performance was topselling mainly specialty products were exemplary.
Post pandemic agriculture was exempted as an essential activity and stays promisingamidst the challenging economic scenario. Earlier in adverse condition our food securitycomes in threat but due to the efforts of our farmer brothers and sistersGovernments favourable policies contribution from scientists & agri-inputcompanies dealers distributors and efforts from field forces of agriculture industrytoday we are doing a record production of almost all agricultural commodities. Due torestriction in movement during lockdown the agriculture sector has experienced a sharpdrop in the availability of labour.
Use of present day agro-chemicals and advanced technology has been providing higheryields with less labour and low resistance. In the dreadful situation of lockdownPunjabs farmer used DSR method and set an example for the rest of the country. DSRpractice in paddy and maize cultivation tackled the problem of labour shortage andgroundwater saving. Also subsidies announced by Central and state Governments undervarious schemes which varies from 25% to 100% on the purchase of machinery also immenselybenefited farmers. New molecules have the ability to strengthen our farmers with ahandful of grams per hectare and more productivity. Similarly to deal with cyclicalmenace Govt. recently allowed use of drones to cover 70% of Indias agricultureland. The consistent efforts from Govt. and Agri input stalwarts have boosted the exportsdespite the pandemic.
Today India is the 4th largest producer of pesticides globally with a domesticconsumption of around Rs. 214 billion in 2019-20. The export of agrochemicals during FY20was valued at around USD 3.1 billion (approximately INR 22000 crore) accounting forapproximately 1% of the total exports and 0.09% of the GDP. Assuming that total exportsgrow linearly by 2025 the Indian agrochemical industry should export agrochemicals worthapproximately INR 38500 crore by 2025. Despite all the determinations in agro chemicalconsumption India still lack behind its global counterparts. Indias use ofpesticides in agriculture is ~0.6 Kg/Ha as compare to ~5 Kg/Ha in UK ~7 Kg/Ha in USA~13 Kg/Ha in China as per report of FICCI-TSMG. In order to increase yield and ensurefood security for its enormous population agrochemicals penetration in India has to go up.For instance Chinas arable land is 119 mn ha its pesticide consumption is 13.07 kgha but Indias arable land is 156 mn ha with a consumption of less than 0.6 kg ha.
For the year 2021 monsoon forecast is favourable and Indian economy is also predictedto revive itself. Moody Analytics forecast also states India's GDP growth will be at 12%which will have highly positive impact not only on our Agriculture but overall economywill see manifold boost. UN has declared the year 2021 as International Year of Fruits andVegetables (IYFV) to raise awareness about nutritional levels of fruits & vegetablesand to advocate its contribution economically and environmentally. All concernedstakeholders in fruits and vegetables production need to empower their knowledge andskills in pest management post-harvest handling and preparation. Right technology farmeroriented policies and combined efforts from government bodies private players FPOs andflourishing start up enterprises will secure the future of Indian agriculture industry.
The capability to convert agriculture through diverse values across the crop productionnetwork by annihilating the limits and parameters is the primary objective of Dhanuka. Wewill continue to Transform India through Agriculture with innovation and world-classsolutions for Indian farmers.