Industry demands PLI to boost agrochemical manufacturing, cut technical imports

New Delhi [India], September 13 (ANI): The Agro Chem Federation of India (ACFI) has urged the government to introduce a PLI scheme and tax holidays to reduce import dependence for technical ingredients and to set up agrochemical manufacturing hubs to boost domestic production.

ACFI and global consultancy firm Deloitte have released a knowledge paper during their Annual General Meeting earlier this week, highlighting the various aspects of the crop protection chemicals industry, the regulatory landscape, and suggesting measures to boost the sector, which is essential for enhancing agricultural productivity and increasing India's contribution to the 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 a decade ago, to become the third-largest agrochemicals exporter in the world only behind China and the 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," Mundhra said.

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 has asserted.

ACFI has also made a strong case for promoting Public-Private R&D collaboration and strengthening MSMEs operating in the sector at its 8th AGM held on Thursday evening, September 11, 2025, here in the national capital.

Praveen Kumar Singh, Agriculture Commissioner and Chairman, Registration Committee, said one 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.

Rajeev Ranjan, Partner-Agri business, Deloitte India, said 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 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. (ANI)

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