Indian agrochemical industry fetching trade surplus of ₹23000Cr

Date:08-10-2022

″Our Prime Minister Shri Narendra Modi ji while addressing Governing council meeting of Niti Aayog emphasised the need to increase exports with less dependence on imports.We involved in agrochemical industry and agriculture are very confident that we can increase export of agriculture inputs and simultaneously increase export of food. Today India is second largest producer of agriculture in world with production of US$481 Bn in the year 2020-21.″ said Mr Rajju Shroff, Chairman Emeritus, CCFI.

During year 2021-22 agrochemical exports were to the tune of ₹ 36521Cr as against imports of ₹13363Cr creating a trade surplus of over ₹23000 Cr a rare feat for any industry!

50% of imports were from China and imports surged by 37% in fiscal 2020-21 mainly due to import friendly regulations. Increased imports lowered domestic industries capacity utilisation and increased costs.
 
The industry has analysed the problem faced by India in exporting rice, tea or even mangoes where we are the among largest producer in the world. If the problems are studied, solutions are found, we are confident to increase our exports of food almost by 100%.
 
Though the foreign funded environmental activists, are against use of pesticides, which is the main input to reduce crop losses in farmers fields and in storage, we can prove that Indian farmers are intelligent and hard-working. The narrative about indiscriminate use of pesticides by Indian farmers, is an outright lie. Would like to give you an example wherein India is using nearly 60000 MT pesticides and produced US$481 Bn worth of agriculture, compared to European Union countries, using 250 lakh MT pesticides and producing less than US$200 Bn worth of agriculture, even though EU has more land than India.
 
″Today it has been proved that Indian scientists and engineers are equal to the best in the world and we are able to produce superior quality pesticides at competitive price. Though last year we exported US$4.9 Bn worth of pesticides but the world market of generic off patent pesticides is US$55 Bn. If unnecessary rules and regulations are streamlined and ease of doing business is done we can boost our export of pesticides to US$ 40 Bn in next 5 years.″ Mr Shroff further added.
 
The agrochemical industry is confident that they would be able to increase export of inputs like pesticides and fertilizers, besides increase our export of food.

″ Unless regulated with tariff and fiscal measures, increasing imports would undermine government’s effort towards Atmanirbhar Bharat through Make in India initiative. CCFI members are committed for making India as a manufacturing hub not only to meet domestic demand but also export to over 130 countries″remarked Mr HarishMehta, Senior Advisor

The industry has recommended higher custom duty at 30% on import of ready made formulations besides maintaining present slab of 18% as GST.