The Agro Chem Federation of India (ACFI) has appealed to the government for policy support such as a PLI scheme and tax holidays to reduce reliance on imported technical ingredients and establish dedicated agrochemical manufacturing hubs. This call was made during the federation’s 8th Annual General Meeting (AGM) in New Delhi on September 11, 2025.
At the AGM, ACFI and Deloitte released a knowledge paper that analyzed the crop protection chemicals industry, regulatory challenges, and recommended measures to enhance production, support farmers, and strengthen India’s role in the global food supply chain.
The report, titled “Ensuring the availability of quality agrochemical products to farmers in India and globally”, highlighted that India’s agrochemical exports reached $3.3 billion in FY25, nearly tripling from $1.3 billion in FY15. India is now the third-largest agrochemical exporter after China and the U.S.
However, the industry continues to face risks due to its dependence on imports of critical raw materials and technical products, largely from China. Mr. Parikshit Mundhra, MD, Willowood, emphasized that reliance on China poses strategic threats, including disruptions from geopolitical tensions, trade barriers, or factory closures, which can trigger shortages and price volatility in India.
The paper pointed out that high-value technical ingredients are still not produced in sufficient quantities domestically due to technological, economic, or environmental constraints.
Dr. Praveen Kumar Singh, Agriculture Commissioner & Chairman, Registration Committee, stressed that policy efforts must balance crop health, farmer well-being, and climate resilience, calling for innovative seed varieties and advanced agrochemicals. He advocated for an output–outcome-based approach in agrochemical innovation.
Mr. Rajeev Ranjan, Partner–Agri Business, Deloitte India, suggested a PLI scheme for critical active ingredients and intermediates, to boost local manufacturing and reduce vulnerability.
Mr. Simon Wiebusch, Chairman, MD & CEO of Bayer CropScience Ltd., noted that India’s Make in India incentives, regulatory reforms, and simplified export registration norms make it an attractive hub for global MNCs to transfer technology and manufacture for exports.
ACFI’s newly elected Chairman, Mr. Rahul Dhanuka, emphasized the importance of ease of doing business in boosting agriculture productivity and doubling farmers’ income.
Mr. Burjis Godrej, MD, Godrej Agrovet, advocated for the creation of agrochemical manufacturing parks, collaborative R&D programs, capacity-building for MSMEs, and structured support programs to strengthen the sector.
