Post-liberalisation period, beginning 1991, has been difficult for the Indian chemical industry especially after the global recession. However, the industry has been able to cope with it by and large and has survived barring some instances. Two things helped -- practicability and gradual decontrol. Judging by the above experience, one can feel confident that given a level-playing field and clearly definedrules of the game, the industry is capable of standing up to the WTO challenge.

The worry is -- are WTO rules and demands fair and transparent? The signals are that they're not. In that case, we need to worry and fight for a better deal, for India and the Third World. By the year 2040, India would have to feed a population of 1.5 billion. This means we need to raise our foodgrain production from 200 to 350 million tonnes.

While economies of scale are important in commodity chemicals like BTX, petrochemicals, plastic etc, they are not vital for intermediate and speciality chemicals and performance chemicals like pharma, agrochem and dyes. Rather than capacity factor, other factors like quality, quick deliveries and packaging are important. India can be a sourcing point for theworld for these types of chemicals, if our companies demonstrate ability to master and implement these systems. These products being made by batch processes or in relatively lower volumes, Indian companies can have cost advantages over their western counterparts.

While MNCs would be in an advantageous position vis-a-vis Indian companies in terms of newer products, larger financial capacity and patent protection, well-managed Indian companies having good generic products and sound marketing polices and infrastructure do not need to worry too much. Many of these Indian agrochem companies are also quite active in exports and are important suppliers in the global markets. The generic products constitute bulk of the volume of pesticides, both locally and globally. If a company can offer a generic product of good quality at competitive price, it does have a place in themarket.

The day is not far when Indian companies will also begin to bring out patents and patent-able agrochemicals like their counterparts in the pharma industry. What is needed is a helpful government and policies to encourage this development.

This is a myth and an unfounded perception going around. India has a reasonable and strict infrastructure and regulatory process in place for the last 30 years to ensure that tested and proven agrochemicals which are safe and efficacious only are allowed to be manufactured and sold. Moreover, agrochemical products are regularly reviewed by expert committees to decide on their continued use or to discontinue or restrict the usage. If a product is banned, alternative products are being introduced at regular intervals.

Yes, global agri-business leaders do combine seeds and pesticide. Their focus is on genetic improvement and plant protection. Both these, however, address only a part of crop husbandry. It leaves out the main components in agriculture -- soil health management. Over the years, we have developed unique capabilities in sustainable soil productivity management. Our company would also play a crucial, complementary role.

Some MNCs have chosen this route. But the success rate has been mixed. This route is chosen partly due to scientific advancement, partly due to patent protection and high entry barriers and partly due to commercial compulsions (of not being able to complete with countries like India and China in agrochemical manufacturing).

However, investments made have been huge. The returns have been slow in coming and are not commensurate. The response and acceptance have not been universal. For example, the USA has welcomed but notEurope and Japan. Major MNCs have been under pressure to perform in the short term. This has led to a lot of mergers and acquisitions. The outcome is not certain. Meanwhile, farmers, environmentalists and consumers are getting skeptical of the agenda of some of these companies. Winning their confidence, through a transparent and win-win conduct is important.