For the financial year 2022-23, agrochemicals export from India reached a new peak of $5.4 bn (Rs 43,223 Crores), up from $4.9 bn (Rs 36,521 Crores) in the previous financial year.
India’s agrochemicals export has doubled in the last 6 years from $2.6 bn in 2017-18 to $5.4 bn in the last financial year according to the data recently released by Ministry of Commerce. It has grown at an impressive CAGR of 13% which is among the highest in the manufacturing sector. According to observers, India now ranks the 3rd largest exporter of agrochemicals in the world after China and USA – excluding the EU.
The size of India’s agrochemicals export is much higher than the size of India’s agrochemicals domestic market.
Globally agrochemicals market is estimated to be $74 bn. Around 80% of this is of post patent chemicals. India is fast emerging as a preferred global hub for thepost patent agrochemicals.
Speaking about this Mr. Deepak Shah, Chairman of Crop Care Federation of India (CCFI) said that Indian agrochemicals industry requires to be recognized as ″export intensive industry″ and all the new investments and projects need to be put on fast track. If this is done the agrochemicals export can easily cross $10 bn in the next 3-4 years. Backward integration, capacity expansion and new registrations considerably foster the growth.
He also said that the recent decision by Government of India to disallow import of pesticide formulations without technical registration would give boost to ″Make in India″ initiative, reduce imports and increases exports.
CCFI has already made representation to the Finance Ministry seeking inclusion of agrochemicals under the Production Linked Incentive (PLI) scheme.
Government of India’s policy of not granting TRIPS-Plus Measures (such as data exclusivity, patent term extension, etc.) greatly helps the local production of post patent products, according to Mr. S. Ganesan, Advisor to CCFI. He further added that more than 20 pesticide molecules would go off-patent between now and 2030. This offers excellent growth opportunity to the Indian industry.
Millions of farmers in over 130 countries trust Indian agrochemicals for their quality and affordable prices, said an industry observer.
In the FTAs under negotiations, GoI requires to position our country as a reliable supplier of agrochemicals for global agriculture, suggests CCFI.