The apex agrochemical policy platform, Agro Chem Federation of India (ACFI), urged the government to introduce a PLI scheme and tax holidays to reduce import dependence on technical ingredients and to establish agrochemical manufacturing hubs to boost domestic production.
ACFI and global consultancy firm Deloitte has released a knowledge paper during their Annual General Meeting highlighting the various aspects of the crop protection chemicals industry, the regulatory landscape, and suggests measures to boost the sector essential for enhancing agricultural productivity and increasing India's contribution in global food supply chain.
The report titled “Ensuring the availability of quality agrochemical products to farmers in India and globally” emphasised India has been a significant player in the agrochemicals exports with the Indian agrochemicals export valued at about USD 3.3 billion as of 2024–25, rising from USD 1.3 billion in 2014-15 to become the third-largest agrochemicals exporter in the world only behind China and US.
In view of the prevailing global uncertainties, Parikshit Mundhra, MD, Willowood remarked that the industry remains import-dependent for key raw materials and technical products, leaving it vulnerable to external supply shocks.
“Reliance on imports of technical inputs from China poses strategic risks, such as disruption in Chinese supply due to geopolitical tensions, trade restrictions, or factory shutdowns, which could create shortages or price spikes in India.”
Certain high-value technical ingredients still aren’t manufactured in adequate volumes domestically, either due to lack of technology, high cost of production, or environmental constraints, the knowledge report said.
ACFI has also made a strong case for promoting Public-Private R&D collaboration, and strengthening MSMEs operating in the sector, which is estimated at Rs 69,000 crore at its 8th AGM held on Thursday evening, September 11, 2025 here.
During the brainstorming session Dr. Praveen Kumar Singh, Agriculture Commissioner and Chairman, Registration Committee said ‘we must ensure not only the health of the crop but also the health of the farming community since agriculture is highly dependent on the climate. An output-outcome approach must be taken in agrochemical sector as well, for example the outcome of a new molecule. Climate & Insect resistant seed variety and improvised agrochemical is need of the hour’.
Dr. Singh also noted that strong policy emphasis on shifting towards sustainable crop protection chemicals and integrated pest management solutions to minimize environmental impact and domestic manufacturing must be boosted.
"The government should introduce a Production-linked Scheme (PLI) scheme for the agrochemical sector, specifically targeting critical active ingredients and key intermediates that are currently imported in large volumes. This will help boost local production, foster self-reliance, and strengthen India’s position in the global supply chain,” Rajeev Ranjan, Partner-Agri business, Deloitte India said.
Make in India incentives, regulatory policy and relaxed data requirement for export registrations are exciting factors for MNCs to transfer technology to Indian players and manufacture for export. This is leading to India becoming one of the potential hubs for global exports, Simon Wiebusch, Chairman, MD & CEO, Bayer CropScience Ltd. added.
Addressing the session, newly elected chairman of ACFI Rahul Dhanuka said ease of doing business is important to increase not just the agriculture production but also help achieve our goal of doubling farmers’ income.
Burjis Godrej, MD, Godrej Agrovet has made a strong case for establishing agrochemical manufacturing parks in different parts of the country, encouraging collaborative R&D for new agrochemical molecules and processes, building MSME capacity and supporting programme among other recommendations.
