Assured Finance Minister on Indian manufacturers' plan to invest more than Rs. 12,000 crore in the next 3 years
Crop Care Federation of India (CCFI) has made a representation to the Finance Minister Nirmala Sitharaman seeking her intervention to include agrochemicals under Production Linked Incentive (PLI) Scheme. The Federation briefed the Minister on issues that are plaguing the Indian manufacturers. The situation has become alarming due to surge in agrochemical imports, majorly readymade pesticide formulations by traders who clandestinely importing not for their captive consumption but merchant sale, which is not officially permissible.
CCFI had submitted a detailed proposal to the Ministry of Chemicals & Fertilizers way back in 2020 followed by several stakeholder consultation meetings.
“Our members have a strong manufacturing hub in India to become self-reliant towards ‘Atmanirbhar Bharat” through Make in India. We have also taken into consideration Research and Development capabilities of Indian companies based on the announcement made by the Finance Minister Nirmala Sitharaman both in Japan and in India, on the theme of Rising Investment Opportunity: Destination India”, informs Harish Mehta, Senior Advisor, CCFI.
Briefing the media Mehta said: “Whenever Indian manufacturers have produced molecules that were previously imported by MNCs, reduction in price has been between 50-80%. The importers make huge profits from these imported formulations causing unnecessary burden on the foreign exchange outgo”.
CCFI has further assured the Finance Minister that Indian manufacturers plan to invest more than Rs. 12,000 crore in the next 3 years provided the proposal is implemented as per industry recommendation.
The detailed dossier submitted has 35 intermediates in terms of their market size, potential and future growth. It had listing of 81 Technicals imported majorly by MNCs, including about 31 Technicals being imported despite having indigenous manufacturing capacities.
“Lastly of concern are 89 readymade formulations being imported which can be manufactured in India. CCFI members are of the firm view that there should be a delta of 10% between the custom duty on import of Technical and formulation. This would be a deterrent to reduce imports and encourage indigenous manufacturing in their expansion plans and future fresh investment” Mehta added.
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