Agrochemicals are excluded from the PLI scheme that is resulting in delays in new investments.
Vimal Kulshrestha, President Crop Protection, Hikal Ltd expressed his views on expectations from Union Budget 23 which will be presented on February 1 in the parliament.
“The Indian crop protection industry is a major contributor to the country’s agriculture sector, providing essential products and services to boost and protect agricultural produce. However, the industry has been facing a number of challenges in recent years, including increased competition from cheaper imports, regulatory hurdles, and a lack of investment in research and development. Agrochemicals are excluded from the PLI scheme that is resulting in delays in new investments. In light of these challenges, the industry is hoping for positive announcements of schemes, regulatory and tax concessions that will support the growth of domestic agrochemical manufacturers. We think that government should restrict /regulate the import of agrochemical formulations into India, which can be manufactured in India from the locally manufactured agro actives and enough capacity is available with Indian manufacturers. This will benefit India by reducing its foreign exchange usage. It will also boost the Government’s ‘Make in India’ efforts. Indian agrochemical industry is poised to make domestic products that can be imported to the world to contribute to the country’s export economy.
Another key area of concern is the need for increased investment in research and development. The industry is looking for measures that will encourage investment in R&D to create new products and improve existing ones. The government’s support in this area will help the industry to stay competitive. Overall, the crop protection chemical industry in India is hoping for a budget that will support the growth and development of the sector, addressing the challenges it currently faces and providing the necessary resources to help it succeed in the future.”