AHMEDABAD, Sept 2: With growing awareness about benefits of neem as a natural pesticide, the estimated Rs 100 crore neem-based pesticide market in the country is growing by 7-9 per cent annually, says a report by Export Import Bank of India (EXIM Bank).
Azadirachtin, an active compound derived from neem seeds and other parts has natural insecticidal properties. It is potentially a substitute for synthetic pesticides used in crop production.
The bank, in its report, said projected growth in global bio-pesticide market at CAGR of 15.8 per cent from 2012 to 2017 could be a prospective growth driver for the neem products in future.
The global bio-pesticide market valued at USD 1.3 billion in 2011, is expected to reach USD 3.2 billion by 2017, growing at CAGR of 15.8 per cent from 2012 to 2017, says a bi-monthly publication of EXIM Bank.
This could be a prospective growth driver for neem products in future, it added.
Europe is expected to be the fastest growing market in the near future owing to the stringent regulation for pesticides and increasing demand for organic products, the report said.
“Neem based products exports by India in 2012 stood at USD 5.73 million, including neem seeds (2.79 per cent of total exports of neem products by value),” EXIM Bank Chief General Manager Prahalathan Iyer said.
USA and Italy are the leading importers of neem extracts from India. With USD 2.62 million imports in 2011-12, USA was the largest importer of neem extracts from India, according to the report.
Japan was the largest importer of neem oil cakes from India, valued at USD 0.28 million in 2011-12, and Spain the largest importer of neem seeds from India, it said. (PTI)
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