Budget 2023-24 Expectation: Government should restrict import of agrochemical formulations

In recent years, the Indian agrochemical industry has been experiencing significant growth, driven by a number of factors including increasing population, rising food demand, export opportunities, and technological advancements. The future of active ingredient manufacturers for crop protection is closely tied to the evolving needs of the agriculture industry. According to Fairfield Market Research, the global crop protection chemicals market will exhibit a 5.3 percent CAGR between 2020 and 2025. Due to its extensive agricultural industry, Asia-Pacific is the region that consumes the most crop protection chemicals. In 2020, China, Japan, India, and Australia held more than 80 percent of the market share in Asia-Pacific for crop protection chemicals. Indian agrochemical industry has immense potential Indian agrochemical manufacturers are renowned for producing molecules of high quality that are cost-effective. Active ingredient manufacturers are developing new, more sustainable, and environmentally friendly products. This includes the development of bio-pesticides  that are derived from natural sources such as enzymes and plant extracts. Organizations are extensively investing in R&D to create state-of-the-art compounds and developing advanced manufacturing techniques to turn India into a global hotspot for crop protection product production. Indian chemical /agrochemical industry has immense potential to improve its share of wallet from global opportunities, considering the challenges global buyers have faced in the recent past from Chinese companies. The government should provide support in R&D and manufacturing to the Indian industry to compete with Chinese manufacturers. Challenges for crop protection industry The Indian crop protection industry is a major contributor to the country’s agriculture sector, providing essential products and services to boost and protect agricultural produce. However, the industry has been facing several challenges in recent years, including increased competition from cheaper imports, regulatory hurdles, and a lack of investment in research and development. Agrochemicals are excluded from the PLI scheme that is resulting in delays in new investments. Considering these challenges, the industry is hoping for positive announcements of schemes, and regulatory and tax concessions that will support the growth of domestic agrochemical manufacturers. The government should restrict /regulate the import of agrochemical formulations into India, which can be manufactured in India from locally manufactured agro actives and enough capacity is available with Indian manufacturers. This will benefit India by reducing its foreign exchange usage. It will also boost the Government’s ‘Make in India’ efforts. The Indian agrochemical industry is poised to make domestic products that can be exported to contribute to the country’s export economy. Another key area of concern is the need for increased investment in research and development. The industry is looking for measures that will encourage investment in R&D to create new products and improve existing ones. The government’s support in this area will help the industry to stay competitive. Overall, the crop protection chemical industry in India is hoping for a Budget that will support the growth and development of the sector, addressing the challenges it currently faces and providing the necessary resources to help it succeed in the future. In conclusion, the future of the active ingredient industry for crop protection looks promising with new developments and emerging trends. The prospects open to the sector and policymakers may aid them in making decisions and working toward bringing newer technology, novel compounds, effective combinations, expanding manufacturing, and developing the right regulatory environment to aid in boosting productivity and foreign investments. The writer is President, Crop Protection, Hikal Ltd- a firm into R&D, manufacturing and marketing of fine chemicals for the pharmaceutical and agrochemical industries. Views expressed are personal. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.