The Agro Chem Federation of India (ACFI), the apex body for the agrochemical industry, has called on the government to launch a targeted, time-bound policy framework. To achieve self-reliance in upstream agrochemical technicals and intermediates, ACFI recommends an estimated Rs. 5,000–7,500 crore support programme for upstream manufacturing. This initiative aims to promote backward integration and counter China's competitive advantage in utility costs.

ACFI and global consulting firm KPMG have launched a joint knowledge paper titled "Redefining Indian Crop Protection through Innovation: From Scale to Science." The paper underscores that future industrial policies must pivot away from open-ended protective tariffs or permanent state subsidies. Instead, the strategic focus should lie in targeting and correcting structural ecosystem disadvantages. By neutralizing these underlying gaps, the policy aims to directly elevate domestic manufacturing competitiveness to match global benchmarks.

“Our focus should remain on what farmers actually need - supporting innovation through an enabling regulatory framework, strengthening domestic capabilities and resilient supply chains, promoting digitalisation, and advancing sustainable agriculture. Ultimately, the success of innovation will depend on how effectively these efforts are translated into practical, accessible and trusted solutions for farmers," Rahul Dhanuka, Chairman, ACFI said.

The ACFI-KPMG report recommends a seven-to-eight-year support period, which includes two to three years for plant commissioning followed by sustained production support. To ensure inclusive growth, the proposed framework must feature graded investment thresholds that cover both Micro, Small, and Medium Enterprises (MSMEs) and large companies across both greenfield and brownfield expansions. It has also called for PLI-style incremental sales incentives, utility subvention like power/effluent subsidies and capital grants for specialized R&D.

The report also suggests 5-8% incentive on incremental sales, 30- 40% subsidization on industrial electricity and shared Common Effluent Treatment Plant (CETP) usage to directly counter China's OPEX advantage.

“India's next phase of growth in crop protection should be anchored in strengthening ecosystem competitiveness, accelerating innovation commercialization, enhancing supply-chain resilience and reducing structural cost disadvantages,” the report said. Among its recommendations, the report calls for specialised agrochemical manufacturing parks with shared utilities, cluster-based environmental infrastructure, long-term financing and selective backward integration in strategically important intermediates. 

“While policy support can create enabling conditions, long-term competitiveness will ultimately depend on how effectively stakeholders collaborate to strengthen manufacturing, innovation, commercialization and market access.”

Following the AGM, ACFI also organised a panel discussion, The Invisible Revolution: How Innovation is Feeding India where eminent luminaries from the government, industry and academia converged to throw light on the innovations and challenges in the agrochemical industry.

Dr Vishal Chaudhary, an eminent Scientist to  Government of India said, “India has already established a strong position in agrochemical manufacturing. The next step is to complement this manufacturing strength with greater focus on research, innovation and technology development.This will require stronger collaboration through public-private partnerships and structured engagement between research institutions, academia and industry.”

Dr. Sweety Behera, Director, FSSAI said, “While innovation in agriculture has traditionally focused on increasing productivity, scientific advancement now requires us to give equal priority to sustainability and consumer safety. Regulatory decisions must therefore be based on sound scientific evidence, risk-based approaches and effective surveillance. Innovation and regulation should complement each other.”

Dr Kavya Dashora, Professor, Indian Institute of Technology, Delhi said, “Nanotechnology can improve crop protection through targeted delivery, controlled release and reduced input use. However, field application faces challenges around nanoparticle behaviour, persistence and toxicity. Wider adoption requires stronger data, tracking mechanisms and “safe-by-design” nanomaterials to ensure environmental and consumer safety.”

Pushplata Singh, Director, TERI said, “Biotechnology and nanotechnology can play an important role in making Indian agriculture more sustainable and climate-resilient. Safe-by-design approaches, including the use of biogenic materials to develop nanopesticides, can improve biocompatibility and safety for plants, humans and the environment. Together, biotechnology and nanotechnology can support more precise input use while helping agriculture respond to increasing climate and resource pressures.”

Dr. Rajvir Rathi, Director- Agricultural Affairs, Bayer CropScience said, “Effective technology licensing and access frameworks can help bridge the gap between agricultural innovation and its adoption by Indian farmers by making proven technologies widely and affordably available.” 

Srinivasa Karavadi, Founder & CEO, KshetragnaFarm Solutions said, “The future of Indian agriculture lies in integrating crop protection, biologicals, crop nutrition, seeds and digital technologies rather than developing solutions in silos. Improving nutrient-use efficiency, restoring soil health and developing stress-tolerant seeds will be critical for achieving greater productivity with lower environmental and resource costs. Digital tools, AI and stronger field-level capabilities can help standardise advice and enable farmers to make more informed choices amid an increasingly complex marketplace.”

Gopinath Koneti, Partner and Senior Advisor KPMG India said, “Agricultural innovation must ultimately pass the test of economic viability, because farmers value solutions that are visible, measurable and, most importantly, profitable. Innovations should therefore be evaluated not only for their scientific merit but also for their practical impact, cost and returns to the farmer. Given the importance of every rupee invested in Indian agriculture, science and economics need to go hand in hand to ensure that innovations deliver meaningful outcomes at scale.”

Prabhudutta, Deputy Editor, Hindu Businesslinesaid, “The industry must anticipate how consumer preferences and farming practices may evolve over the next decade and develop solutions that align with those changing expectations. Farmers are willing to adopt new technologies when they see clear benefits, but companies must ensure that products are reliable, responsibly developed and do not compromise farmer interests or soil health. Building long-term farmer trust is key.”

Dr. Kalyan Goswami, DG, ACFI said, “Innovation in agriculture cannot succeed in isolation. Biotechnology, crop protection, biologicals, nanotechnology, digital technologies, improved seeds and crop nutrition must converge to create solutions that are scientifically sound, economically viable and relevant to farmers. Equally important is building and preserving farmer trust. As an Association, we remain committed to bringing together industry, academia, government and the scientific community to create an ecosystem where innovation can move from research to the field and ultimately benefit the Indian farmer.”