The Indian agrochemicals sector has created a trade surplus of Rs. 23,000 crore for FY 2021-22 as exports were to the tune of Rs. 36,521 crore as against imports of Rs. 13,363 crore creating a trade surplus of over Rs. 23,000 crore, a rare feat for any industry.

Speaking on increasing agriculture exports, Rajju Shroff, Chairman Emeritus, Crop Care Federation of India (CCFI) said, “Our Prime Minister Narendra Modi while addressing the Governing Council meeting of Niti Aayog emphasised the need to increase exports with less dependence on imports. We are involved in the agrochemicals industry and agriculture are very confident that we can increase export of agriculture inputs and simultaneously increase export of food. Today, India is the second largest producer of agriculture in the world with production of US $481 billion in the year 2020-21.”

In FY 2020-21, 50% of imports were from China and imports surged by 37% mainly due to import friendly regulations. Increased imports lowered domestic industries capacity utilisation and increased costs.

The industry has analysed the problem faced by India in exporting rice, tea or even mangoes where we are the among largest producers in the world. If the problems are studied, solutions are found, we are confident to increase our exports of food almost by 100%.

Though the foreign funded environmental activists are against use of pesticides, which is the main input to reduce crop losses in farmers fields and in storage, we can prove that Indian farmers are intelligent and hard-working. The narrative about indiscriminate use of pesticides by Indian farmers is an outright lie.

India is using nearly 60,000 MT pesticides and produces US $481 billion worth of agriculture, compared to European Union countries, using 250 lakh MT pesticides and producing less than US $200 billion worth of agriculture, even though the EU has more land than India.

“Today it has been proved that Indian scientists and engineers are equal to the best in the world and we are able to produce superior quality pesticides at competitive prices. Though last year we exported US $4.9 billion worth of pesticides, the world market of generic off patent pesticides is US $55 billion. If unnecessary rules and regulations are streamlined and ease of doing business is done, we can boost our export of pesticides to US $40 billion in the next 5 years,” added Shroff. 

The agrochemical industry is confident that they would be able to increase export of inputs like pesticides and fertilizers, besides increasing our export of food.

“Unless regulated with tariff and fiscal measures, increasing imports would undermine the government's effort towards Atmanirbhar Bharat through Make in India initiative. CCFI members are committed to making India as a manufacturing hub not only to meet domestic demand but also export to over 130 countries,” remarked Harish Mehta, Senior Advisor, CCFI. 

The industry has recommended higher custom duty at the rate of 30% on import of ready made formulations besides maintaining a present slab of 18% as GST.