India's agrochemical import problem

India relies heavily on China for crop protection chemicals and intermediates, giving Chinese producers a major cost advantage that Indian companies struggle to match.

ACFI's Rs 5,000-7,500 crore plan

The Agro Chem Federation of India proposes a seven-to-eight-year government support programme worth Rs 5,000 to 7,500 crore to build domestic capacity and offset China's cost edge.

Incentives and subsidies proposed

The plan recommends five to eight percent incentives on incremental sales and thirty to forty percent subsidies on industrial electricity and effluent treatment plants to directly counter China's operating cost advantage.

Infrastructure and support needed

The framework calls for specialized agrochemical parks with shared utilities, cluster-based environmental infrastructure, long-term financing, and a single digital platform for faster approvals across central and state governments.

Biologicals offer growth opportunity

India has significant potential in biological crop-protection products, leveraging its biodiversity, fermentation expertise and scientific talent, but needs pilot facilities, field-validation networks and formulation platforms to commercialize successfully.

“India's next phase of growth in crop protection should be anchored in strengthening ecosystem competitiveness, accelerating innovation commercialisation, enhancing supply-chain resilience and reducing structural cost disadvantages.”

Beyond manufacturing capacity

India must develop capabilities in product development, biologicals, regulatory science and digital agriculture rather than just adding manufacturing capacity to achieve sustainable growth in crop protection.