India Region

Budget 2025-26: CropLife India’s Vision for Innovation, Affordability, and Agricultural Growth

24 January 2025, New Delhi: CropLife India has outlined key recommendations for the Union Budget 2025-26 to bolster the agrochemical sector. These measures focus on driving innovation, supporting farmers, and advancing sustainable agricultural practices. The association has urged the Government to provide a 200% weighted deduction on R&D expenses for agrochemical companies and consider extending this benefit to units with fixed assets of at least ₹50 crores and annual R&D spending of ₹10 crores. Such incentives would promote local innovation, align with the ‘Make in India’ initiative, and enable farmers to access cutting-edge technologies.

Another critical suggestion is maintaining a uniform basic customs duty of 10% on both technical raw materials and formulations. CropLife India cautioned against increasing the duty to 30%, as it would make crop protection products less affordable, especially for smallholder farmers who already face significant financial challenges. The association also noted that imposing restrictions on formulation imports would deprive Indian farmers of safer and advanced agrochemical solutions, ultimately hindering their ability to combat pests and adapt to changing climate conditions.

Additionally, CropLife India has advocated for reducing the GST on agrochemicals from 18% to 12%, aligning it with other agricultural inputs. This reduction would help lower the cost of agrochemicals, directly enhancing farmers’ savings and contributing to the Government’s goal of doubling farmers’ income. The association also emphasized the need for simplifying GST rules, particularly concerning the issuance of credit notes, as current regulations pose significant challenges for companies and their customers, including an inverted duty structure.

Mr. Ankur Aggarwal, Chairman of CropLife India and Managing Director of Crystal Crop Protection Ltd., highlighted the importance of reforms in the upcoming Budget. He remarked, “The Budget 2025-26 should focus on reforms aimed at increasing the farmers’ income through increasing the productivity and fostering the inclusive and sustainable growth of the agriculture sector. Newer and greener crop protection products are required to tackle the emerging challenges. The availability of new formulations through import—whether single molecules or their combinations—plays a crucial role in helping farmers to address the resistance developing in pests and impacts of climate change, and enhance the global competitiveness of Indian agricultural produce. As these innovative solutions are adopted by farmers, local manufacturing begins, further supporting the ‘Make in India’ initiative. What starts as formulation imports eventually transitions to domestic manufacturing, first of the formulations and then of the technical products in India.”

Mr. Aggarwal further urged the Government to establish a science-based, progressive, and predictive regulatory framework. He stated, “We request the Indian Government to create an ecosystem around the science-based, progressive, and predictive regulatory framework that will allow the sector to become globally competitive and reach its full potential. It is crucial that we move away from a dual policy approach that restricts formulation imports in India while simultaneously promoting formulation exports.”

CropLife India also emphasized the importance of strengthening the Extension Mechanism to enhance outreach and support for farmers. By allocating dedicated funds in the Budget and fostering partnerships with the private sector, the Government can ensure the effective implementation of initiatives that directly benefit farmers. The association noted the success of “Kisan Drones” introduced in Budget 2022-23, which have significantly improved agrochemical spraying, crop assessment, and land record digitization. Expanding such digital infrastructure would further enhance Indian agriculture and support the development of a robust digital ecosystem.

Also Read: Coromandel International Unveils Advanced Soil and Leaf Testing Laboratory in Kakinada to Nurture Sustainable Farming

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