PMFAI pushes Indian govt for increasing import duty on finished pesticides formulations

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09 November 2021, Mumbai, IN: Pesticides Manufacturers & Formulators Association of India (PMFAI) in its Budget Proposals for the year 2022-23 appealed Government of India to increase basic Customs Duty on imports of Pesticides. The Imports of ready to use Finished Pesticides Formulations to India stands at 10% in comparison to Customs Duty applied on key Intermediates/Intermediates at 7.5% which are Manufacturing Use Products (MUPS).

In a written proposal given to Mr D. K. Madan, Director, Ministry of Chemicals & Fertilizers, PMFAI has appealed to increase Customs Duty on Imports of Finished Pesticides Formulations from the present 10% to 30%.

Pesticides Manufacturers & Formulators Association of India (PMFAI) is a national association representing Agrochemicals/Pesticide Industry with 221 large, medium and small-scale Indian Agrochemical industries as members, existing from the year 1967.

As per Mr Pradip Dave, President, PMFAI, the MNCs and Importers lobby are pressurising Government to retain the same Customs Duties on imports of Readymade Pesticide Formulations. The low Customs Duty applied on imports of Finished Pesticides provides advantages to Importers and MNCs, who are taking full advantage of the situation and Indian Farmers by charging them from 100% to over 300% profit margins on Imported Pesticides Formulations. 

Stating an example from the industry, Mr Pradip Dave mentioned, “Bispyribac Sodium 10% SC which is a broad spectrum Herbicide Formulation used in Rice cultivation which was imported at a cost of Rs.1000 and sold to Farmers in India at a monopoly price of Rs.8,000/L is now available at less than Rs.3,000/L when Indian companies started manufacturing the same.”

ProductApprox price per kg/ltr at the time of Introduction by MNCsPrice by Indian CompaniesPercentage (%) Reduction price
Bispyribac Sodium 10%  SCRs. 8000Rs.3000230
Sulfosulfuron 75%WGRs.48,148Rs.14,815325
Deltamethrin 2.8% ECRs.3,000Rs.400750
Acetamiprid 20% SPRs. 6,380Rs. 800797
Cypermethrin 25% ECRs. 1,500Rs. 400375
Imidacloprid 17.8% SLRs. 3,000Rs. 700425
Thiomethoxam 25% WGRs. 4,000Rs. 1,100360
Emamectin Benzoate 5% SGRs. 8,000Rs. 3,600220
Clodinafop-Propargyl 15%WPRs.4,375Rs.1,875230
The table indicates the profit margins charged by Importers to Farmers.

As per estimates by CMIE, Ministry of Commerce, during the year 2020-21, imports of Agrochemicals/Pesticides increased to a staggering 41.2% versus domestic production increase of 11.9%, which necessitates steps to marginalise imports and encourage indigenous manufacturing.

The industry body also appealed the government to reduce GST on Pesticides from the present 18% to 5% for the benefit of farmers to protect their crops. 

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