Chlormequat Chloride Market Revolutionary Trends 2020 – 2030

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Chlormequat Chloride: Introduction

• Chlormequat chloride is an organic salt consisting of equal numbers of chlormequat and chloride ions. It is primarily used as a plant growth regulator, which usually induces retardation of shoot elongation and vegetative growth in majority of crops.
• Chlormequat chloride hampers the action of gibberellic acid, which leads to shortening and strengthening of stems in plants. Furthermore, it reduces branching and foliage in certain species of shrubs and trees.
• Chlormequat chloride increases chlorophyll formation and development of the root system, resulting in greater crop yield. Based on application, the global chlormequat chloride market can be segmented into cereals, cotton, ornamentals, and others.

Key Drivers of Chlormequat Chloride Market

• Chlormequat chloride is a major chemical compound that is used in the agriculture industry in India and China to produce high quality crops. Various government schemes has been launched by the Government of India to boost agricultural productivity and enhance the awareness of agriculture. The Government of India launched the ‘Pradhan Mantri Krishi Sinchai Yojana (PMKSY)’ in 2015 with an objective to improve irrigation sources and agriculture productivity in drought affected areas by investing US$ 7.7 Bn for a period of five years. Additional funds for this scheme are estimated to be announced in the next year budget allocation.
• Increase in private investments in agriculture companies in China is projected to boost the agricultural produce in the country in the next few years. This is anticipated to boost the sales of chlormequat chloride.
• India has one of the major agriculture industries after China. Increase in population of both these countries is likely to boost the demand for agricultural products.
• The global population rose at a rate of 1.2% per annum from 2000 to 2018. According to a report published by the UN, the global population is estimated to reach 9.7 billion in 2050 and nearly 11 billion around 2100. Asia Pacific accounted for 59.7% share of the global population in 2017. Demand for agricultural produce has been increasing year-on-year in India and China owing to the rise in population in these countries. Many countries in Asia Pacific such as China, India, Indonesia, Thailand, and Vietnam have launched government schemes to boost their agriculture exports to countries in Europe and North America. In December 2018, the Government of India launched the Agriculture Export Policy. Under this new policy, the government aims to double the country’s agricultural export to US$ 60 Bn by 2022 and reach US$ 100 Bn in the next few years by emphasizing on the promotion of indigenous agri-product exports. In order to meet the high demand for fruits and vegetables, companies operating in the agriculture sector are aiming to improve productivity of their farms with the help of chlormequat chloride. Enacted of these polices by various governments is expected to augment the demand of chlormequat chloride in the near future.

Key Restraint of Chlormequat Chloride Market

• In 2016, the European Union rejected 30 tons of table grapes imported from Maharashtra, India, worth US$ 40.7 Mn as they contained traces of chlormequat chloride, a plant growth regulator. The EU’s maximum residue limit for chlormequat chloride, commonly called lihocin, stands at 0.05 mg/kg (or 0.05 ppm). However, Agricultural and Processed Food Products Export Development Authority under the Union Ministry of Commerce of India does not include chlormequat chloride in the list of chemicals and pesticides to be screened in export quality grapes. This ambiguity about the usage limit of chlormequat chloride is anticipated to hamper the market in the long term.

Covid-19 Impact on Chlormequat Chloride Market

• The COVID-19 pandemic has positively impacted the agriculture industry in Asia Pacific owing to the increase in home consumption of food products. The agriculture industry in India experienced a growth rate of 3.4% in the first quarter of 2020-2021 vis-à-vis the same quarter in the previous fiscal year. The global agriculture industry has not been severely impacted by the COVID-19 pandemic as compared to the slowdown in other sectors.

Asia Pacific to Hold Significant Share of Global Chlormequat Chloride Market

• In terms of region, the global chlormequat chloride market can be divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
• The chlormequat chloride market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period. It is estimated to be followed by the market in Latin America.
• Asia Pacific is a prominent producer of agricultural products such as rice, wheat, vegetables, and ornamentals. Hence, the requirement for chlormequat chloride is high in the region. Furthermore, rise in demand for high quality crops is expected to drive the chlormequat chloride market in the region.
• The market in Europe is estimated to expand in the near future, as farmers are focusing on agriculture. This is likely to boost the usage of chlormequat chloride for crops in the region.