ACFI Urges Incentives to Boost Agrochemical Manufacturing, Cut Import Dependence
New Delhi : The Agro Chem Federation of India (ACFI), the apex agrochemical policy platform, has called on the government to roll out Production-Linked Incentive (PLI) schemes, tax holidays, and agrochemical manufacturing hubs to strengthen domestic production and reduce reliance on imported technical ingredients.
At its 8th Annual General Meeting held on Thursday evening, ACFI, along with global consultancy Deloitte, released a knowledge paper titled “Ensuring the availability of quality agrochemical products to farmers in India and globally.” The report underscores India’s growing role in global agrochemicals, with exports nearly tripling from $1.3 billion in FY15 to $3.3 billion in FY25, making it the third-largest exporter after China and the US.
However, the sector remains import-dependent for key raw materials. “Reliance on imports of technical inputs from China poses strategic risks, such as supply disruptions due to geopolitical tensions or factory shutdowns,” said Mr. Parikshit Mundhra, MD, Willowood.
The knowledge paper highlighted that several high-value technical ingredients are not manufactured domestically in sufficient volumes due to lack of technology, high costs, or environmental challenges. To address this, ACFI recommended stronger Public-Private R&D collaborations, MSME support, and policies to boost sustainable crop protection solutions.
Dr. Praveen Kumar Singh, Agriculture Commissioner and Chairman, Registration Committee, emphasized that agriculture’s climate sensitivity requires “an output-outcome approach,” calling for climate- and insect-resistant seed varieties alongside innovative agrochemicals.
Echoing the need for policy push, Mr. Rajeev Ranjan, Partner–Agri Business, Deloitte India, said: “The government should introduce a PLI scheme targeting critical active ingredients and intermediates currently imported in large volumes.”
Industry leaders also stressed India’s growing potential as a global agrochemical hub. “Make in India incentives, regulatory support, and relaxed export registration norms are encouraging MNCs to transfer technology to Indian players,” said Mr. Simon Wiebusch, Chairman & MD, Bayer CropScience Ltd.
Newly elected ACFI Chairman Mr. Rahul Dhanuka underlined that ease of doing business is critical to raising agricultural productivity and achieving the goal of doubling farmers’ income.
Adding to the recommendations, Mr. Burjis Godrej, MD, Godrej Agrovet, advocated for setting up agrochemical manufacturing parks, collaborative R&D, and MSME capacity-building initiatives to strengthen India’s leadership in the sector.