The 18% GST on agrochemicals makes quality crop protection costly for farmers. Moreover, India’s reliance on imports emphasizes the need for PLI advantages to inspire local production
Union Finance Minister Nirmala Sitharaman will be introducing the Union Budget 2025 on February 1 in the Lok Sabha. Indian agrochemical sector expects Union Budget 2025-26 to prioritize funding in agricultural research and development (R&D), with a focus on growing new, climate-resilient crop sorts. The area also pursues PLI scheme for agrochemicals.
Ravi Annavarapu, President, FMC India
“The Indian agriculture region is experiencing a huge transformation at the back of technological inventions and the approaching budget introduce an essential opportunity to strengthen the sector beyond and empower our farmers.
Increased access to reasonable credit stays important for our farmers. We encourage the government to amplify interest rate allotment plans and simplify loan procedures. Strengthening the PM-Kisan scheme through expanded payouts and broader coverage will give important income aid. A more comprehensive and reasonable crop plan is also crucial to mitigate threats from unstable climate and marketplace volatility.
Additionally, the budget needs to prioritize funding in agricultural research and development (R&D), with a focus on growing new, climate-resilient crop sorts. We also think that the cost of farming ought to be reduced. To this end, we suggest a drastic discount in import duties and GST on pesticides, guaranteeing farmers have access to good quality, innovative product. While expanded customs duties on pesticides is probably profitable for many, we think this would be dangerous to farmers. We suggest the budget to focus on two key areas either making revolutionary technologies reachable and decreasing the price load on farmers. These needs minimizing levies on farm inputs. Particularly, we suggest lowering customs duties on intermediates needed for producing pesticides from 7.5% to 2.5% and reducing customs duties on pesticides from 10% to 5%.
Moreover, using innovation in crop improvement, pest management, and sustainable farming practices is important. Supporting and developing Production Linked Incentive (PLI) schemes for the agrochemical and fertiliser sectors will inspire domestic manufacturing and decrease reliance on imports. We want to prioritize policies that inspire the adoption of latest technology, together with precision agriculture and biotechnology with the intention to help our farmers in the longer run. Sustainable agriculture practices and climate-resilient crops are main for the long-time period advantage of our agricultural sector.
The 2025-26 budget may be a transformative one for Indian agriculture. In essence, it can lay the foundation for a more resilient, productive, and sustainable agricultural area via being extra inclusive, which will give advantage to both farmers and the country’s economy holistically.”
Vimal Kumar Alawadhi, MD, Best Agrolife
India is on its way to turning into an international leader in agriculture, with the Ministry of Agriculture projecting a record-breaking Kharif food grain manufacturing of 1647.05 LMT for 2024-25 a top notch growth from the previous year. This fulfillment owes a whole lot to the unwavering support of the Indian agrochemical industry.
Furthermore, the challenges continue and to maintain this momentum and sustain India’s leadership in the agriculture and agrochemical sector we want sturdy authorities’ policies. The 18% GST on agrochemicals makes first class crop safety protection for farmers. Decreasing it to 5% would make these products more available, increasing productivity and profitability. Additionally, India’s reliance on imports emphasizes the need for Production-Linked Incentive (PLI) advantages to encourage local production.
The growing pest resistance demands inventive solutions but on the same time the growing raw material price is a big challenge for the industry. To assist this, the government may want to reintroduce the 200% income tax discount on investments in R&D and registration studies. The PLI scheme and studies related incentives could create an environment that drives invention and develops solutions customized to India’s agricultural desires.
The authorities can sell public-private partnerships to expand new crop protection molecules in India. These partnerships can help proportion the high discovery costs and improve home innovation. With institutional help, they can produce a strong R&D ecosystem, decrease import dependence, and make India a leader within the international agrochemical market.
Sanjiv Kanwar, Managing Director, Yara South Asia
“As we expect the coming near budget, it is critical to acknowledge the development made within the agriculture region over the last year. The authorities’ latest action to improve farmer welfare, includes enhanced credit and insurance schemes, were commendable steps within the proper direction.
Looking forward, we see big opportunities to similarly enhance the sustainability of Indian agriculture. Key regions include elevated funding in yield development programs, help for seed ecosystem, and accelerated adoption of digital agriculture.
Empowering Farmer Producer Organizations (FPOs) and enforcing a stable method to fertilizer subsidy reform may also be important. Additionally, policy assist for sustainable fertilizer use and quick introduction of new creative products/ molecules will align properly with the industry’s focus on environmental management.
We are confident that a forward questioning budget will empower our farmers and pave the approach for a resilient and prosperous agricultural future.”
