Agrochemicals export likely to touch Rs 80,000 crore in 4 yrs: ACFI-EY report

India's agrochemical exports are projected to exceed Rs. 80,000 crore (US$ 9.61 billion) over the next four years, contingent upon a supportive industry environment, according to a report by the Agro Chem Federation of India (ACFI) and EY. The report highlights that agrochemical exports reached Rs. 43,223 crore (US$ 5.50 billion) in the 2022-23 fiscal year, surpassing domestic consumption. To achieve this growth, the report emphasizes the need for government action, including streamlining licensing processes, enhancing storage and sales infrastructure, incentivizing biopesticide production, and simplifying the registration of new products. ACFI also advocates for trade agreements with countries that have relaxed maximum residue level (MRL) norms and suggests reducing the Goods and Services Tax (GST) on agrochemicals from 18% to 5%.

Despite being the fourth-largest global producer of agrochemicals, India still relies heavily on imports, particularly from China. The report notes that India's agrochemical usage is lower than the global average, with just 400 grams per hectare compared to 2.6 kg per hectare worldwide. The "Make in India" initiative is a crucial opportunity to address these challenges and position India as a global agrochemical manufacturing and export hub.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.