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India’s agrochemical exports could rise to over Rs 80,000 crore in the next four years, provided the industry is provided with an enabling environment, according to a report by AFCI and EY.
A report by industry body Agro Chem Federation of India (ACFI) and EY titled ‘Indian Agrochemical Industry: The History, Challenges and Aspirations’ noted that agrochemical exports stood at Rs 43,223 crore in fiscal year 2022-23.
“India’s exports of agrochemicals exceed domestic consumption of the same. Indian exports from the agrochemical industry have witnessed commendable growth in recent times,” said the report which was released at the 7th Annual General Meeting of ACFI held recently.
ACFI said the government should focus on facilitating an enabling environment that includes streamlining licensing norms and improving infrastructure for storage and sale, incentivizing production of biopesticides, streamlining the registration process for new molecules, entering into trade agreements with countries with more relaxed MRL norms and introducing a PLI-like scheme to attract investments from global players.
“The hallmark of India’s agrochemical industry is its quality and affordable prices, which make its products the first choice of millions of farmers across 130 countries. If provided with an enabling environment, the sector shows the potential to achieve exports of over Rs 80,000 crore in the next four years,” the report said.
The industry body also proposed reducing GST from 18 per cent to 5 per cent.
“Reliance on generic molecules, low use of agrochemicals, complex registration process for new molecules and heavy dependence on imports are some of the challenges that need to be transformed into opportunities through ‘Make in India’ initiatives,” said Parikshit Mundhra, President, ACFI.
Given its role in improving agricultural productivity and export potential, he said the agrochemical industry will play a vital role in India’s quest to become a global manufacturing hub ultimately resulting in a $5 trillion economy by 2025.
“India’s agrochemical industry plays a critical role in the success of its agriculture, helping to increase crop yields and safeguard food security. As the fourth largest producer of agrochemicals globally, India faces a paradox: while it has significant production capacity, it still imports a significant amount of agrochemicals, mainly from China,” said Kalyan Goswami, Director General of ACFI.
The Make in India initiative provides an opportune framework to transform these challenges into opportunities, enabling India to become a global hub for agrochemical manufacturing and export, he added.
The use of agrochemicals (kg/ha) is lower in the Indian market. “India reportedly uses only 400 grams/ha of agrochemicals, which is much lower than the global average of 2.6 kg/ha,” the report said.
First published: September 9, 2024 | 17:07 IS
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