INSUBCONTINENT EXCLUSIVE:
Representative Image: Shutterstock3 min read Last Updated Sep 09 2024 | 5:07 PM IST
India's agrochemical exports could increase to over
Rs 80,000 crore in the next four years provided the industry is facilitated with conducive 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 Story, the challenges
and the aspirations' noted that the exports of agrochemicals stood at Rs 43,223 crore in the 2022-23 fiscal.
"India's Agrochemical
exports outweigh the domestic consumption of the same
The Indian exports by agrochemical industry have witnessed commendable growth in recent times," said the report which was released at the
streamlining licencing norms and improving infrastructure for storage and sale, incentivise biopesticide production, streamline registration
process for new molecules, enter trade agreements with countries with more relaxed MRL norms, introduce PLI-like scheme to attract
investment from global players.
"The USP of India's agrochemical industry is their quality and affordable prices which makes their
products the first choice of millions of farmers across 130 nations
If facilitated a conducive environment, the sector shows the potential of achieving exports of over Rs 80,000 crore in the next four years,"
the report said.
The industry body also pitched for reducing GST from 18 per cent to 5 per cent.
"The reliance on generic molecules, low
agrochemical usage, the complex registration process for new molecules and heavy dependence on imports are some of the challenges that must
be transformed into opportunities through the 'Make in India' initiatives," Parikshit Mundhra, Chairman, ACFI said.
Given its role in
enhancing agricultural productivity and export potential, he said the agrochemical industry will play a vital role in India's quest of
becoming a global manufacturing hub ultimately resulting in a $5 trillion economy by 2025.
"India's agrochemical industry plays a
pivotal role in its agricultural success, supporting increased crop yields and safeguarding food security
As the fourth-largest producer of agrochemicals globally, India faces a paradox: while it holds significant production capacity, it still
imports significant amount of agrochemicals, primarily from China," ACFI Director General Kalyan Goswami said.
The "Make in India"
initiative provides a timely framework to transform these challenges into opportunities, enabling India to become a global manufacturing and
export hub for agrochemicals, he added.
Agrochemical usage (kg/ha) is lower in the Indian market
"As per reports, India uses only 400 gram/ha of agrochemicals that is way below the global average of 2.6 Kg/ha," the report said.First
Published: Sep 09 2024 | 5:07 PMIST
