India’s agrochemical exports set for growth with policy support

India’s agrochemical exports could surpass Rs 80,000 crore in four years with proper government support, according to a report by ACFI and EY. The report urges streamlining regulations and improving infrastructure, while ACFI advocates for GST reduction and leveraging ‘Make in India’ to boost exports and reduce import dependence.

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India’s agrochemical exports could potentially surpass Rs 80,000 crore within the next four years, provided the industry is supported by a favorable environment, according to a report by the Agro Chem Federation of India (ACFI) and EY. The report, titled *Indian Agrochemical Industry: The Story, the Challenges and the Aspirations*, highlighted that agrochemical exports were valued at Rs 43,223 crore during the 2022-23 fiscal year.

The report, released at the 7th AGM of ACFI, noted that “India’s Agrochemical exports outweigh the domestic consumption of the same,” with impressive growth observed in recent years. ACFI emphasized the need for the government to create a more conducive environment by streamlining licensing procedures, improving infrastructure for storage and sales, promoting biopesticide production, simplifying the registration process for new molecules, forming trade agreements with countries that have relaxed MRL norms, and introducing schemes similar to PLI to attract global investments.

India’s agrochemical industry is known for its quality and affordability, making its products a top choice for millions of farmers across 130 nations. The report projected that, with the right support, exports could reach over Rs 80,000 crore by 2027. ACFI also advocated for reducing the GST on agrochemicals from 18% to 5%.

Challenges facing the industry include reliance on generic molecules, low usage of agrochemicals, complex registration for new molecules, and a heavy dependence on imports, especially from China. ACFI Chairman Parikshit Mundhra called for leveraging the ‘Make in India’ initiative to turn these challenges into opportunities, highlighting the agrochemical sector’s role in India’s goal to become a global manufacturing hub and achieve a $5 trillion economy by 2025. The report also noted that India’s agrochemical usage is significantly below the global average.