The Agro Chem Federation of India (ACFI) has requested the government to introduce a production linked incentive (PLI) scheme and tax holidays to reduce import dependence on technical ingredients for production of agro chemicals in the country.

It has also urged the Centre to set up agrochemical manufacturing hubs in different regions of the country to boost domestic production.

ACFI has also made a strong case for promoting public-private R&D collaboration, and strengthening the ₹69,000-crore MSMEs segment in the agri chemical sector, the industry body said in a statement a day after its annual general meeting.

A report titled “Ensuring the availability of quality agrochemical products to farmers in India and globally”, prepared by Deloitte, was also released on the occasion.

Rising exports

The report has emphasised that the Indian agrochemicals export valued at about $3.3 billion (in 2024–25) has increased from $1.3 billion in 2014-15 and made the country the world’s third-largest agrochemicals exporter after China and the US.

Amid the prevailing global uncertainties, the agrochemical industry remains import-dependent for key raw materials and technical products, leaving it vulnerable to external supply shocks, said Parikshit Mundhra, MD, Willowood. “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,” he 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 report pointed out.

Addressing the AGM, Agriculture Commissioner PK Singh 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. Climate- and insect-resistant seed variety and improvised agrochemical is need of the hour.”

Due to strong policy emphasis on shifting towards sustainable crop protection chemicals and integrated pest management solutions to minimise environmental impact, domestic manufacturing must be boosted accordingly.

“The government should introduce a 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 and these are leading to India becoming one of the potential hubs for global exports, said Simon Wiebusch, Chairman and MD of Bayer CropScience.

Published on September 12, 2025