Friday, 20 June 2025
The Crop Care Federation of India (CCFI), representing over 50 leading Indian agrochemical manufacturers, has submitted a detailed representation to Union Finance Minister Nirmala Sitharaman seeking urgent policy intervention to address the surge in agrochemical imports. The Federation has called for an upward revision of customs duties to safeguard domestic manufacturing and promote the government’s ‘Make in India’ vision.
According to CCFI Chairman Deepak Shah, agrochemical imports have jumped by 53 percent over the past five years—from Rs 9,096 crore in 2019–20 to Rs 13,998 crore in 2024–25—posing a serious threat to indigenous producers. “Despite domestic investments of over Rs 40,000 crore, Indian manufacturers are struggling to compete with low-cost imports dominated by multinational corporations and trading lobbies,” Shah said.
The Federation flagged that nearly half of India’s formulation manufacturing capacity lies idle due to the unchecked influx of both ready-made formulations and technical-grade imports. While Indian firms now hold 85 percent of the global generic pesticide market and have become the world’s second-largest exporter, CCFI warned that unregulated imports are eroding the competitiveness of the domestic sector.
In its appeal, CCFI has recommended raising the current 10 per cent customs duty on imported finished formulations to 30 percent, and duties on technical-grade imports to 20 percent. The Federation also proposed a differential duty structure with a minimum 10 per cent delta between formulation and technical imports. “Formulation imports bring no value addition, no job creation, and undergo no strict quality checks—yet end up being more expensive for farmers,” noted CCFI senior advisor Harish Mehta.
Highlighting quality concerns, CCFI cautioned that many imported products may contain expired or substandard materials with unknown toxicity, posing environmental and health risks. The Federation argued that Indian manufacturers, backed by their own R&D and technological capabilities, can produce the same agrochemicals at a lower cost with better quality assurance.
To level the playing field, CCFI urged the government to offer export incentives or duty drawbacks similar to the 9–16 percent subsidies offered by competing nations. It also called for the creation of dedicated HSN codes for agrochemical imports to enhance monitoring and enforcement.
Further, CCFI recommended that no imported formulation be permitted unless its corresponding technical ingredient is registered and approved in India under the same regulatory norms applied to domestic products. The current lack of parity, the Federation argued, undermines both safety standards and domestic capacity building.
The letter to the Finance Minister also underscored the potential for import substitution to conserve foreign exchange, boost local manufacturing, and create employment. “Pesticides account for less than one percent of total input costs, and India’s usage is among the lowest in the world at 380g per hectare. Increasing customs duties will not hurt farmers’ incomes,” Shah explained.
Reaffirming its commitment to Atmanirbhar Bharat, the Federation appealed for swift action to realign import policies with national priorities. “Collaborating with the government is vital to strengthening India’s agrochemical sector. Revising the customs duty structure and tightening import controls are critical to ensure the long-term viability of domestic manufacturers and to protect our farmers and trade ecosystem,” Shah concluded.
