Crop Protection

Union Budget 2025 Expectations: Vimal Kumar, Managing Director, Best Agrolife Ltd, Shares His Insights

21 January 2025, New Delhi: India is positioning itself as a global leader in agriculture, with a remarkable projection of 1647.05 LMT for Kharif food grain production in 2024-25, surpassing last year’s figures. Reflecting on this milestone, Vimal Kumar, Managing Director of Best Agrolife Ltd, emphasizes the vital role of the agrochemical industry in this achievement and outlines his expectations for the Union Budget 2025.

Vimal Kumar, Managing Director, Best Agrolife Ltd

A Call for Policy Reforms in Agrochemicals

“India is on its way to becoming a global leader in agriculture, with the Ministry of Agriculture projecting a record-breaking Kharif food grain production of 1647.05 LMT for 2024-25—a remarkable increase from the previous year. This achievement owes much to the unwavering support of the Indian agrochemical industry,” said Kumar.

However, Kumar noted that challenges persist in maintaining this momentum. He underscored the importance of robust government policies to sustain India’s leadership in the agriculture and agrochemical sectors. One critical area of concern is the high GST on agrochemicals, which currently stands at 18%.

“The 18% GST on agrochemicals makes quality crop protection expensive for farmers. Reducing it to 5% would make these products more accessible, boosting productivity and profitability,” Kumar suggested.

Encouraging Local Manufacturing Through Incentives

India’s reliance on imports for agrochemical raw materials continues to be a significant issue. Kumar advocated for Production-Linked Incentive (PLI) benefits to promote local manufacturing, reducing import dependency and enhancing India’s self-reliance in this sector.

Addressing Pest Resistance and Rising Costs

Kumar also highlighted the increasing challenge of pest resistance and the burden of rising raw material costs. He proposed reintroducing the 200% income tax deduction on investments in R&D and registration studies to support the industry’s innovation efforts.

“The PLI scheme and research-linked incentives would create an ecosystem that drives innovation and develops solutions tailored to India’s agricultural needs,” Kumar stated.

Promoting Public-Private Partnerships

Another key recommendation from Kumar is the promotion of public-private partnerships to develop new crop protection molecules.

“These partnerships can help share the high discovery costs and boost domestic innovation. With institutional support, they can create a strong R&D ecosystem, reduce import dependence, and make India a leader in the global agrochemical market,” Kumar added.

As the Union Budget 2025 approaches, these recommendations provide a clear roadmap for strengthening India’s agriculture and agrochemical sectors. With supportive government policies, India can not only sustain its agricultural achievements but also cement its position as a global leader in this domain.

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