The number of China's pesticide companies would be cut by 30 percent by 2015, according to the draft of Industrial Policy for Pesticide Industry released Tuesday by the Ministry of Industry and Information Technology.

The ministry said that the revenue of the country's 20 largest pesticide companies should account for 50 percent of the industry's total revenue by 2015, and 70 percent by 2020.

The gross output of the industry totalled 89.6 billion yuan (13.1 billion U.S. dollars) from January to August, according to China agrichem web, a Harbin based portal site for agricultural chemicals.

By 2015, 50 percent of the companies that produce pesticide ingredients would move to industrial areas to optimize industrial layout and reduce pollution, the ministry said. By 2020 the number would rise to 70 percent.

The draft suggested that by 2015 the 10 largest companies spend three percent of annual revenue on research and development, and by 2020, 30 percent of China's pesticide exports should have intellectual property rights.

The draft said by 2015 the pesticide industry should decrease waste gas, water and industrial residues by 30 percent, and increase by-product recycling by the same percentage. By 2020 both figures should rise to 50percent.

From January to September China produced 1.69 million tonnes of pesticide ingredients, up 10.8 percent year on year, said China Petroleum and Chemical Industry Association, which has China Pesticide Industrial Association as a member, at its website.