New Delhi: The agrochemical exports have shown remarkable growth recently and could exceed Rs 80,000 crore in the next four years, according to a knowledge paper by AFCI-EY titled “Indian Agrochemical Industry: The Story, the Challenges, the Aspirations.” This paper was released at Tuesday’s 7th AGM of the Agro Chem Federation of India (ACFI).
“The USP of the industry lies in its quality and affordable prices, making its products the first choice for millions of farmers across 130 nations. With a conducive environment, the sector can achieve agrochemical exports of over Rs 80,000 crore in the next four years,” the paper stated.
Industry veterans emphasised that the government must facilitate a conducive growth environment for exports. This includes streamlining licensing norms, improving infrastructure for storage and sale, incentivising biopesticide production, simplifying the registration process for new molecules, entering trade agreements with countries that have more relaxed MRL norms, introducing a PLI-like scheme to attract investment from global players, and reducing GST from 18 per cent to 5 per cent.
The knowledge paper further highlighted that introducing PLI incentives for agrochemicals can attract investments of around Rs 10,000 to Rs 15,000 crore in the next five years.
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Speaking at the panel discussion, Parikshit Mundhra, Chairman of ACFI, said, “We must transform challenges such as reliance on generic molecules, low agrochemical usage, a complex registration process for new molecules, and heavy dependence on imports into opportunities through the ‘Make in India’ initiatives.”
Mundhra added that the agrochemical industry will play a crucial role in enhancing agricultural productivity and export potential, supporting India’s goal of becoming a global manufacturing hub and achieving a USD 5 trillion economy by 2025.
The agriculture sector has been growing at a 3.8-4 per cent CAGR, but to meet the USD 5 trillion economy goal, agriculture and allied sectors need to grow at a compound annual growth rate (CAGR) of 9.3 per cent, the knowledge paper highlights.
During the panel discussion titled “Make in India: Transforming Challenges into Opportunities in the Agrochemical Industry,” experts such as Parikshith Jhaver, Founder & Promoter of Tagros Chemicals; Rajesh Aggarwal, MD of Insecticides (India); Ankur Agarwal, MD of Crystal Crop Protection; Aashish Kasad, Sr. Partner at EY, and Maulik Mehta, CEO of Deepak Nitrite, reiterated that the “Make in India” initiative has the potential to transform India’s agrochemical industry into a global manufacturing and export powerhouse. By addressing the challenges of reliance on generic molecules, low usage of agrochemicals, and a complex regulatory framework, India can capitalise on the opportunities presented by global market shifts and domestic demand growth.
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The Federation highlighted three key growth levers: improving trade and marketing of agrochemicals, increasing domestic production and R&D, and creating a favourable policy environment. These efforts will not only help achieve the US$5 trillion economy target but also ensure sustainable agricultural growth, enhanced food security, and improved livelihoods for millions of farmers across the country.
The speakers underscored that streamlining the process of obtaining licenses for storage and sale across states and improving infrastructure can boost domestic trade. They argued that a simplified export registration process and strategic trade agreements would bolster agrochemical exports. Adopting technology to ensure the efficient use of agrochemicals, raising awareness among farmers, introducing a PLI-like scheme for global players, and fostering R&D through public-private partnerships (PPP) will boost domestic production.
Setting the tone for the panel discussion, ACFI Director General, Dr. Kalyan Goswami said, “India’s agrochemical industry plays a pivotal role in its agricultural success, supporting increased crop yields and safeguarding food security. As the fourth-largest producer of agrochemicals globally, India faces a paradox: while it has significant production capacity, it still imports a substantial amount of agrochemicals, primarily from China. The ‘Make in India’ initiative provides a timely framework to transform these challenges into opportunities, enabling India to become a global manufacturing and export hub for agrochemicals.”
