The size of the spurious pesticide market in India is as high as 30% by volume and 25% by value, according to a study released by industry lobby FICCI and the Tata Strategic Management Group. The spurious chemicals market is growing at 20% per year, the study said, adding that this will lead to a loss of 10.6 million tonnes in foodgrain production during the current year. The study, titled Substandard, Spurious/Counterfeit Pesticides in India, predicted that the market for spurious agro-chemicals will reach 40% by value of pesticides sold in the country by 2019. At present, the size of the domestic crop protection industry is estimated at Rs13,000 crore. Overall, use of fake products can reduce crop yields by 4%, the study estimated, implying a loss of 10.6 million tonnes in food production in the current year. States like Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Maharashtra, West Bengal, Haryana, Maharashtra, and Karnataka are some of the worst effected, it said. Unmonitored use of toxic chemicals can lead to soil degradation, ground and surface water contamination and adverse health impacts on humans and animals, the study noted, adding that the menace could put at stake export of grains and horticulture products from India. Export of 29 million tonnes of foodgrain worth $26 billion and 3 million tonnes of fruits and vegetables worth $1.4 billion is at stake, it said. The key factors driving the illegal market are cheaper prices—up to 40% lower compared to genuine pesticides—which attract farmers, and higher margins—between 25 to 30% for fake products, compared to 3-5% for genuine ones—which entice retailers, the study said. New product registration takes between 1-3 years in India and the time-consuming process acts as a virtual entry barrier, the study said. Further, it cited a recent survey by the National Pesticide Manufacturers Association which found ‘bio-products’ to be “laced with unknown chemicals and sold without any registration or going through tests for health, environment or performance parameters”. Alongside proactive monitoring by farmers and manufacturers, the study urged the government to pass the Pesticide Management Bill 2008 that is pending in Parliament. The bill seeks to regulate manufacture, inspection, testing and distribution of pesticides alongside levying heavy penalties for violations. The bill should also define bio-products, it added. The study also recommended setting up more state-owned laboratories and increase in the number of samples collected by pesticide inspectors at the field level.