An ACFI-EY report projects that with the right support, India’s agrochemical exports could exceed Rs 80,000 crore in the next four years. Currently, the industry exports more than Rs 43,000 crore, leveraging its competitive edge in quality and affordability to achieve this ambitious target.
The report, titled “Indian Agrochemical Industry: The Story, the Challenges, and the Aspirations”, was released by the Agro Chem Federation of India (ACFI) and EY. It noted that in the 2022-23 fiscal year, India’s agrochemical exports amounted to Rs 43,223 crore.
“India’s agrochemical exports have outgrown domestic consumption and witnessed remarkable growth recently,” the report stated. Released during ACFI’s 7th AGM, the report highlighted the industry’s potential and called for a conducive environment to unlock further growth.
ACFI emphasized that the government should focus on key areas such as simplifying licensing procedures, improving storage and sales infrastructure, incentivizing biopesticide production, and streamlining the registration of new molecules. Additionally, trade agreements with countries that have relaxed Maximum Residue Limit (MRL) norms and a PLI-like scheme to attract global investments are crucial.
“The strength of India’s agrochemical industry lies in its quality and affordability, making it the preferred choice for farmers across 130 countries. With the right conditions, the sector can achieve exports of over Rs 80,000 crore in the next four years,” the report stated.
ACFI also recommended reducing the Goods and Services Tax (GST) on agrochemicals from 18% to 5%.
Parikshit Mundhra, Chairman of ACFI, pointed out that challenges such as reliance on generic molecules, low agrochemical usage, a complex registration process for new molecules, and heavy dependence on imports must be addressed. He called for these challenges to be turned into opportunities through the ‘Make in India’ initiative.
Highlighting the agrochemical industry’s crucial role in enhancing agricultural productivity and exports, Mundhra said that the sector is key to India’s goal of becoming a global manufacturing hub and contributing to a USD 5 trillion economy by 2025.
Kalyan Goswami, ACFI Director General, emphasized that although India is the fourth-largest agrochemical producer globally, it still imports a significant amount of agrochemicals, mostly from China. The “Make in India” initiative, he said, offers a strategic opportunity to address this gap and position India as a global manufacturing and export hub for agrochemicals.
The report also noted that India’s agrochemical usage is significantly lower than the global average. At just 400 grams per hectare, it lags behind the global average of 2.6 kilo
grams per hectare.
