Ways to Curb Counterfeit in Crop Protection Industry: Solutions for Brand and Revenue Enhancement

©2019 ASPA www.aspaglobal.com
How to curb Counterfeit in Pesticides
Industry & Solutions for Revenue & Brand
Enhancement
Presented by:
Chander S Jeena
Secretary
Authentication Solution Providers’ Association (ASPA)
PMFAI 50th Annual General Meeting, Hotel Sun and Sand, Mumbai, India

Agenda
 Introduction – About ASPA
 Counterfeiting problem in Agro-inputs
 Scenario in India
 Factors responsible
 Five Steps approach to curb Counterfeit
 Anti-Counterfeiting solutions
 Global Examples – Case Studies
 Conclusion and recommendations

About ASPA
 ASPA (Authentication Solution Providers’ Association) is a non-profit
organisation formed in 1998.
 AIM is to educate brand owners / authorities towards importance of
authentication solutions in order to fight the problem of counterfeiting.
 More than 55+ member companies across the globe providing diversified
anti-counterfeiting have join hands with us (including physical and digital
authentication solutions providers).
 Its member companies are protecting more than 15,000 brands across
globe.
 Works very closely with industry association such as International
Hologram Manufacturers Association, UK, Counterfeit Intelligence Bureau,
UK, FICCI CASCADE, Indian Beverage Association and others.

COUNTERFEIT IN PESTICIDES FEW RECENT CASES
July 2018: Europol’s annual Operation SILVER AXE
Seized 360 tonnes of illegal or counterfeit pesticides, which could cover
48,000 square km, equivalent to the size of the UK.
Sources:
ASPA Counterfeit News Repository http://www.counterfeitrepository.com/
https://www.europol.europa.eu
July 2018:Karnataka farmer writes to CM, says no to loan waiver,
request to curb fake pesticides
April 2018:मौसम और नकली दवाओं ने तोडी आम की अच्छी फसल की उम्मीद
Dec 2018:कृ षि षवभाग बना मूकदर्शक, दवाई षवक्रे ता षबना लाइसेंस बेच रहे
नकली कीटनार्क

SCENARIO IN INDIA
Notes:
In 2015, FICCI estimates that the non-genuine pesticides market in India is estimated at Rs 3200 crore (25% by value) and expected to grow
20% per year and by 2019 40%.
According to recent study by FICCI, the domestic market increased with CAGR 3.5% for period 2013-16, and expected to grow 6.4% by 2022.
Current 1 USD = INR 70.01 estimate for FY 2022
Sources: FICCI knowledge and strategy paper on Indian Agrochemicals Industry / Doubling Farmers’ Income: Role of Crop Protection
Chemicals & Solutions
13000 13455
22400
0
5000
10000
15000
20000
25000
FY 2014 FY 2017 FY 2022
Indian Crop Protection Domestic Market
Total Market (Rs Crore)
CAGR 3.5% CAGR 6.4%
Counterfeit Market
Rs 3200 cr (25%)
CAGR
40% of
value
Reducing
counterfeit
market even by
5% means
additional
business of 600
crore every year
considering FY
2014 figure
FY 2019

IMPACT OF NON-GENUINE PESTICIDES
Sources: FICCI knowledge and strategy paper on Indian Agrochemicals Industry
Overall yield for farmers across the country in case of 25% non-genuine /
illegal products prevailing can reduce by ~4%. This implies ~10.6 million
tons of food production loss in the current year.
Apart From this, there are other
Irreversible damage to environment
Hamper India position as one of the leading food grain exporter in the world
is fully at stake as the possibility of rumors or sabotage by other countries or
rejection of Indian exports food items from developed importing countries
would increase. In such a scenario, export of ~29 million tons of food grains
worth ~ INR 1, 578 Billion (~ USD 26 Billion) is at stake.
Apart from Food grains, export of ~ 3 million tons of fruits and vegetables
worth ~ INR 88 Billion (~ USD 1.43 Billion) is also at stake due to non-
genuine / illegal pesticides.

FACTORS RESPONSIBLE
Counterfeiting Increase
because of various factors,
however, the two key factors
are
Lack of Awareness
Only 25-30% of
the farmers are aware of the use
of pesticides and they don't
exactly know what to
spray in their fields
Consumer / Industry/ Govt.
empowerment to identify
fake vs. genuine
Counterfeiters arrested for period 2016-18 in India Investigated
4949 1936

Step 1: Change in
approach towards
product
protection
Step 2: Formation
of team focuses
on anti-
counterfeiting
strategy
Step 3: Selection
of right anti-
counterfeiting
technology
Step 4: Monitoring
and developing IP
strategy
Step 5: ISO
Standards
FIVE STEP STATEGY

Step 1: Change in approach
towards product protection
As a first step, every CEO or
Brand owner should take the
responsibility of brand attack
and make Brand Risk
Management (BRM) an
intrinsic part of the Business
Plan with regular review

Step 2 A:
Formation of
team focuses
on anti-
counterfeiting
strategy
Team to be formed for Brand risk management
May comprise of CEO/Brand owner; Brand Managers; Head
of Marketing, Product Development, Sales, Logistic,
Packaging, Manufacturing or outside consultant accountable
for the brand.
Periodically review the BRM by analyzing
various issues like:
i) Product categories & markets
ii) Buyer profiles
iii) Supply chain management and SWOT
analysis of the counterfeiters
Make a customized & integrated solution: This can
be done by increasing the participation of co-opting
consumer or channel partner and by conducting
verification, raids or ensuring strong law enforcement

Step 2 B: Assess your current packaging
 The need of an hour is the secured packaging (integrate your current existing packaging with Anti-
counterfeiting solutions).
Bottles / Jars
/ Glass
Tubes
Plastic Pouch /
Mono carton
Label
Shrink
Sleeve
Wads
Cap
Direct
Printing
Label
Strip
Strip
Label
Laminate

Step 3 A: Selection of Authentication Element – Basic Parameters
1. Physical characteristics such as static, dynamic,
durability, environmental, feature (overt, covert or
machine readable)
2. Attack resistance of authentication element such as
tampering resistance
3. Integration process (security, manufacturing,
compliance etc.)
4. Attack resistance of authentication tools

Step 3 B: Selection of anti-counterfeiting technology
Security buying, important consideration;
 Use at-least one level of overt authentication
 Focus on ethical vendor which can provide multi layered security solution, have secure
manufacturing / services and adhering to best practices
 The solution should provide authentication element such as tampering resistance and can fulfill
integration process (security, manufacturing, compliance etc.)
 To select technology take help of published standards such as ISO 12931 and NASPO
Authentication
Physical
Authentication
Anti-
Counterfeitin
g
OVD’s Security
Printing
Security
Inks &
Coatings
Substrates –
Security
Papers
Chemical &
molecular
taggants
Anti-
Tamper
Tamper
Evident
Labels /
Closures
Digital
Serialization
Track and
Trace
Mobile
Authentication
Blockchain / AI

Step 4:
Monitoring and
developing an
Intellectual
Property
strategy
Constant monitoring at distribution
channel with the help of anti-
counterfeiting technology.
Planned surveillance program
If any infringement is found,
take action

Step 5: Adopt
Standards and
best practices
ISO has published new Standards 12931 to fight
against counterfeiting of material goods
Study the best practices adopted by others and
constantly review and refine your strategy
Source: http://www.iso.org/iso/catalogue_detail?csnumber=52210
http://ficci.in/publication-page.asp?spid=20641
.
Human Senses Authentication Tool Forensic
Analysis
Off the shelf Purpose built
General audience OVERT COVERT - -
Restricted audience OVERT COVERT COVERT COVERT
ISO has categorized authentication solution as;

GLOBALLY INTEGRATED INDUSTYRY APPROACH BY FEW COMPANIES
Source: https://agriculture.basf.com / https://www.bayer.com / De La Rue
Steps BASF Bayer DuPONT
Raising awareness among farmers, retailers and
authorities as well as the broader public
YES YES YES
Relentlessly investigating and strongly responding to
cases of counterfeiting of BASF products
YES YES YES
Collaborating with global and national trade
associations to implement anti-counterfeiting
measures
Yes
CropLife/E
CPA
YES
CropLife /
ECPA
YES
Supporting governments globally to establish and
enforce anti-counterfeiting regulations, policies and
practices
YES YES
Implementing technical means to authenticate
products / Safeguarding supply chain
YES Cap Seal Izon

GLOBAL CASE STUDIES - COUNTRY
Background
Uganda National Agro-input Dealers Association notes that close to Shs14b is lost
annually through counterfeit agro-chemicals. This is corroborated by a Food and
Agriculture Organisation study that revealed that in 2012, Uganda lost Shs13.8b in fake
agro-chemicals.
ICT Solutions
In 2012, International Fertilizer Development Centre in collaboration with CropLife and
other partners in Uganda introduced ways to reduce counterfeits. Among these was a
mobile authentication service. Three products Roundup, Dursban and Mamba (most
counterfeited) were stuck with a scratch panel bearing a 12-digit code.
UGANDA
Most common type of counterfeiting
Mislabeling & tampering of labels and packages
Source: http://www.monitor.co.ug/Magazines/Farming/Counterfeit-agro-inputs-high-on-the-market/689860-2510874-uossl6z/index.html

11. RECOMMENDATIONS AND CONCLUSION
While the trade of counterfeit pesticides has dramatically increased, tackling
counterfeits is not impossible. Counterfeiting is a problem that needs to be
addressed quickly and decisively. Ideally, as a first move, more effective
partnerships should be built between the brand owners, authentication
solution providers enforcement agencies and consumers with focus on
intelligence sharing, creating awareness and product identification training.
Secondly, for any authentication solutions please contact ASPA members /
ASPA. We would be pleased to help.

Thank You
For more information, please contact
Secretariat
Authentication Solution Providers’ Association
21-Ground Floor, Devika Tower 6,
Nehru Place, New Delhi 110019, India
Email: info@aspaglobalcom
Website: www.aspaglobal.com
Disclaimer: Presentations are intended for educational purposes only and do not replace independent professional judgment. Statements of fact and
opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of the
Authentication Solution Providers 'Association (ASPA). ASPA does not endorse or approve, and assumes no responsibility for, the content, accuracy or
completeness of the information presented. The data used here are from various published and electronically available primary and secondary sources.
Despite due diligence the source data may contain occasional errors. In such instances, ASPA would not be responsible for such errors.

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