India becomes more prominent in the export of agrochemicals
22 May 2023, New Delhi: Agrochemical export from India reached a new peak of $5.4 bn (Rs 43,223 Crores) for the financial year 2022-23, up from $4.9 bn (Rs 36,521 Crores) of the previous financial year.
India’s agrochemicals export was $2.6 bn in 2017-18 from where it has doubled in the last 6 years to $5.4 bn in 2022-23 according to the data released by the Ministry of Commerce.
The exports have grown at a CAGR of 13% which is among the highest in the manufacturing sector. According to industry experts, India now ranks as the 3rd largest exporter of agrochemicals in the world after China and USA, excluding the EU. India’s domestic market for agrochemicals is substantially less than its export market. The agrochemicals market is estimated to be worth $74 billion globally. Of this, post-patent agrochemicals make up about 80%.
India’s Agrochemical Export
|Year||Export Value ($ bn)|
Speaking about this Mr. Deepak Shah, Chairman of the Crop Care Federation of India (CCFI) said “Indian agrochemicals industry requires to be recognized as export intensive industry and all the new investments and projects need to be put on a fast track. 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 mentioned, “The recent decision by the Government of India to disallow the import of pesticide formulations without technical registration would give a boost to the Make in India initiative, reduce imports, and increases exports.”
CCFI has made representation to the Finance Ministry seeking the inclusion of agrochemicals under the Production Linked Incentive (PLI) scheme.
The 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.
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