Representation to Finance Minister for inclusion of Agrochemicals under Production Linked Incentive (PLI) Scheme: CCFI

Crop Care Federation of India is an apex trade body of 50 large Indian Manufactures dealing in agricultural inputs majorly in Agrochemicals which is now considered as ‘Champion Sector’.

CCFI had submitted a detailed proposal to the Ministry of Chemicals & Fertilizers way back in 2020 followed by several stakeholder consultation meetings.

Our members have a strong manufacturing hub in India to become self-reliant towards ‘Atmanirbhar Bharat″ through Make in India. We have also taken into consideration Research and Development capabilities of Indian companies based on the announcement made by the Hon’ble Finance Minister Smt Nirmala Sitharaman both in Japan and in India, on the theme of ″Rising Investment Opportunity : Destination India″.

Now CCFI has made a representation to the Hon’ble Finance Minister seeking her intervention citing several issues which are plaguing the Indian manufacturers. The situation has become alarming due to surge in agrochemical imports, majorly readymade pesticide formulations by traders who clandestinely importing not for their captive consumption but merchant sale, which is not officially permissible.

The imports of agrochemicals have increased by 65% from Rs. 9096 Cr. (2019-20) to Rs. 15,000 Cr. (est.) during 2022-23. Interestingly 55% of these are readymade formulations requiring no value addition or any capital investment.

Agrochemical is a one of those sectors where there is a Trade Surplus of Rs. 30,000 Cr. (2022-23)

Briefing the media Mr. Harish Mehta, Senior Advisor CCFI said ″Whenever Indian manufacturers have produced molecules that were previously imported by MNCs, reduction in price has been between 50-80%. The importers make huge profits from these imported formulations causing unnecessary burden on the foreign exchange outgo″.

CCFI has further assured the Finance Minister that Indian manufacturers plan to invest more than 12,000 Cr. in the next 3 years provided the proposal is implemented as per industry recommendation.

The detailed dossier submitted has 35 intermediates in terms of their market size, potential and future growth. It had listing of 81 Technicals imported majorly by MNCs, including about 31 Technicals being imported despite having indigenous manufacturing capacities.

″Lastly of concern are 89 readymade formulations being imported which can be manufactured in India. CCFI members are of the firm view that there should be a delta of 10% between the custom duty on import of Technical and formulation. This would be a deterrent to reduce imports and encourage indigenous manufacturing in their expansion plans and future fresh investment″ Mr. Harish Mehta added.