ACFI Urges Policy Reforms to Strengthen India’s Agrochemical Sector

The Agro Chem Federation of India (ACFI) has called on the Government of India to introduce a comprehensive set of policy measures to boost domestic agrochemical manufacturing and reduce reliance on imported technical ingredients. The appeal comes at a time when India has emerged as the world’s third-largest exporter of agrochemicals, with exports valued at nearly USD 3.3 billion in FY25.

ACFI has emphasized that India’s agrochemical industry holds immense potential to drive both agricultural productivity and export competitiveness. However, the sector faces significant challenges due to heavy dependence on imported active ingredients, fluctuating global supply chains, and rising production costs. To address these issues, the Federation has recommended a series of policy interventions that would strengthen self-reliance, promote innovation, and accelerate growth.

Key recommendations include:

• Production-Linked Incentive (PLI) schemes: Introducing targeted incentives to encourage large-scale domestic manufacturing of technicals and intermediates.
• Tax holidays and fiscal support: Providing financial relief to agrochemical manufacturers, particularly MSMEs, to enhance competitiveness and capacity building.
• R&D collaboration: Establishing stronger linkages between industry, academia, and government research institutions to accelerate innovation in sustainable crop protection solutions.
• Boosting MSME participation: Ensuring smaller enterprises in the agrochemical sector gain access to capital, technology, and export opportunities.

Industry experts note that these measures would not only reduce India’s dependency on imports from countries like China but also position the nation as a global hub for agrochemical innovation and sustainable crop protection solutions. ACFI’s call for reforms aligns with the broader vision of ‘Atmanirbhar Bharat,’ where strengthening domestic industries is central to long-term economic resilience.

The Federation also highlighted that, despite India’s impressive export position, policy bottlenecks continue to constrain sectoral growth. Streamlined regulations, simplified approval processes, and predictable policy frameworks are seen as critical to unlocking the next phase of expansion. Industry stakeholders believe that such reforms could propel India to become the second-largest global exporter within the coming decade.

As the agricultural sector continues to confront challenges from climate change, pest resistance, and food security pressures, a robust and self-sufficient agrochemical industry will play a pivotal role in ensuring farmers have timely access to safe, effective, and affordable solutions. ACFI’s policy recommendations, if implemented, could significantly transform the industry landscape and contribute to India’s vision of becoming a global agricultural powerhouse.