India’s Agrochemical Exports Set To Surpass Rs 80,000 Crore By 2028: ACFI-EY Report

ENA Sectors 2024-09-10 16:33:02 New Delhi, Sep 10 (KNN) A recent report by the Agro Chem Federation of India (ACFI) and EY indicates that India's agrochemical exports could potentially exceed Rs 80,000 crore within the next four years, provided the industry receives appropriate support and a favorable operating environment. The study, titled 'Indian Agrochemical Industry: The Story, the challenges and the aspirations,' reveals that agrochemical exports reached Rs 43,223 crore in the 2022-23 fiscal year. Notably, India's agrochemical exports currently surpass domestic consumption, with the sector experiencing substantial growth in recent times. To achieve this projected growth, the ACFI recommends several key measures. These include streamlining licensing norms, improving infrastructure for storage and sale, incentivising biopesticide production, and simplifying the registration process for new molecules. The industry body also suggests establishing trade agreements with countries having more flexible Maximum Residue Limit (MRL) norms and introducing a Production-Linked Incentive (PLI) scheme to attract global investment. The report highlights the Indian agrochemical industry's competitive advantage in quality and affordability, making its products the preferred choice for farmers across 130 nations. The ACFI also advocates for a reduction in the Goods and Services Tax (GST) on agrochemicals from 18 per cent to 5 per cent. Parikshit Mundhra, Chairman of ACFI, emphasised the need to transform current challenges into opportunities through 'Make in India' initiatives. These challenges include reliance on generic molecules, low agrochemical usage, complex registration processes for new molecules, and heavy import dependence. India, as the fourth-largest producer of agrochemicals globally, faces a paradox of significant production capacity coupled with substantial imports, primarily from China. The 'Make in India' initiative is seen as a potential framework to address these challenges and position India as a global manufacturing and export hub for agrochemicals. The report also notes that agrochemical usage in India is considerably lower than the global average, at 400 grams per hectare compared to the world average of 2.6 kilograms per hectare. As India aims to become a USD 5 trillion economy by 2025, the agrochemical industry is expected to play a crucial role in enhancing agricultural productivity and realising the country's export potential. (KNN Bureau) 39226 https://knnindia.co.in/news/newsdetails/sectors/indias-agrochemical-exports-set-to-surpass-rs-80000-crore-by-2028-acfi-ey-report 2024-09-10 16:33:02 knnindia.co.in India’s Agrochemical Exports Set To Surpass Rs 80,000 Crore By 2028: ACFI-EY Report