CropLife India, an association of 17 R&D driven crop science companies, has proposed key measures to enhance the focus on innovation and research & development, which will enable farmers to access newer and greener crop protection products. These recommendations include:

* Providing a 200% weighted deduction on R&D expenses for agrochemical companies.

* Maintaining a uniform basic customs duty of 10% for both technical raw materials and formulations.

* Reducing GST on agrochemicals from the current 18% to 12%.

* Allocating funds in the Budget to strengthen the Extension Mechanism, ensuring better outreach and support for farmers. 

These steps would foster growth in the sector, benefiting farmers and contributing to sustainable agricultural practices; which is an urgent need. The Budget should allocate funds to strengthen the extension mechanism and actively invite collaboration from the private sector; which will enhance the reach and effectiveness of various initiatives. 

Ankur Aggarwal, Chairman - CropLife India and Managing Director of Crystal Crop Protection Ltd., opines,"The Budget 2025-26 should focus on reforms aimed at increasing the farmers' income through increasing the productivity and fostering the inclusive and sustainable growth of the agriculture sector. Newer and greener crop protection products are required to tackle the emerging challenges. The availability of new formulations through import —whether single molecules or their combinations—plays a crucial role in helping farmers to address the resistance developing in pests and impacts of climate change, and enhance the global competitiveness of Indian agricultural produce. As these innovative solutions are adopted by farmers, local manufacturing begins, further supporting the 'Make in India' initiative. What starts as formulation imports eventually transitions to domestic manufacturing, first of the formulations and then of the technical products in India”. 

Aggarwal added, “We request the Indian Government to create an ecosystem around the science-based, progressive, and predictive regulatory framework that will allow the sector to become globally competitive and reach its full potential. It is crucial that we move away from a dual policy approach that restricts formulation imports in India while simultaneously promoting formulation exports.” 

Our rationale

The Budget 2022-23 marked a significant step with the inclusion of "Kisan Drones" for agrochemical spraying, crop assessment, and digitization of land records. ‘Kisan Drones’ have rapidly become an invaluable tool for Indian farmers and the establishment of digital public infrastructure will further enhance Indian agriculture, while also providing a boost to the digital ecosystem for agriculture.

As we look ahead to Budget 2025-26, it is crucial that the focus shifts towards the crop protection industry. CropLife India and its members urge the Government to consider the following measures:

* Provide a 200% weighted deduction on R&D expenses for pesticide companies.

* Retain a uniform basic customs duty of 10% for both technical raw materials and formulations.

* Reduce the GST on agrochemicals from the current 18% to 12%.

* Allocate Funds in Budget to Strengthen the Extension Mechanism

These measures would directly benefit farmers, further empowering them and enhancing the agricultural sector as a whole.