The Crop Care Federation of India (CCFI), the apex trade body representing 50 major Indian agrochemical manufacturers, has submitted a detailed appeal to Union Finance Minister Nirmala Sitharaman earlier this month calling for urgent revision of customs duties on agrochemical imports. The Federation, chaired by Deepak Shah, expressed deep concern over the rising imports that threaten indigenous production and undermine government initiatives like Make in India and Atmanirbhar Bharat.
Precision agriculture tools
Surge in Imports Poses Threat to Domestic Industry
According to CCFI, agrochemical imports have surged by 53 percent in the last five years, increasing from ₹9,096 crore in 2019-20 to ₹13,998 crore in 2024-25. Despite significant domestic investments totaling over ₹40,000 crore, Indian manufacturers are struggling to compete with cheaper imports, mainly from China. The Federation highlighted that almost half of India’s formulation manufacturing capacity remains unused, as multinational companies flood the market with imported formulations and technical grade raw materials.
Agrochemical Exports, Imports, and Trade Surplus
| Year | Exports from India (₹ Cr.) | Imports (₹ Cr.) | Trade Surplus (₹ Cr.) |
| 2019–20 | 23,757 | 9,096 | 14,661 |
| 2020–21 | 26,513 | 12,418 | 14,095 |
| 2021–22 | 36,521 | 13,365 | 23,156 |
| 2022–23 | 43,224 | 14,315 | 28,909 |
| 2023–24 | 34,750 | 11,671 | 23,079 |
| 2024–25 | 36,145 | 13,998 | 22,147 |
Source: Ministry of Commerce Database, accessed on 19th May, 2025.
India’s agrochemical industry is now a trade surplus sector, with exports valued at approximately ₹36,145 crore in 2024-25, resulting in a surplus of ₹22,147 crore. Indian companies hold 93 percent of the global generics pesticide market and have become the world’s second-largest exporters, surpassing the US. However, unchecked imports of finished formulations and raw materials threaten to derail this progress by distorting market dynamics and discouraging local manufacturing.
Demand for Increased Customs Duties
CCFI has recommended an immediate increase in customs duties to 30 percent on imported finished formulations and 20 percent on technical grades. The Federation also suggested a possible differential duty structure with higher rates on formulations primarily imported by multinational corporations and traders. These measures aim to curb indiscriminate imports and protect Indian manufacturers who currently receive no incentives under the existing duty framework.
Addressing concerns about potential price hikes for farmers, the Federation cited government data showing that pesticides account for less than one percent of total crop input costs. Therefore, increasing customs duties is unlikely to significantly impact farmers’ expenses but would help ensure the availability of affordable, high-quality domestic pesticides.
Quality and Safety Concerns Over Imported Products
CCFI raised alarms over the purity and safety of imported formulations, warning that some products may contain expired or substandard technical materials with unknown toxicity profiles. This lack of quality control could have serious environmental and health consequences. The Federation stressed that India already possesses the technology and capacity to manufacture these products domestically, making imports unnecessary.
Call for Government Incentives and Regulatory Reforms
The Federation pointed out that China’s pesticide industry benefits from export incentives ranging between 9 to 16 percent, giving Chinese exporters an unfair advantage. CCFI urged the Indian government to introduce similar duty drawbacks or subsidies to level the playing field for domestic manufacturers. The Federation also called for the creation of dedicated Harmonized System of Nomenclature (HSN) codes to properly classify agrochemical imports, enabling better monitoring and enforcement.
CCFI insisted that imported formulations should only be allowed after mandatory registration of their corresponding technical-grade pesticides in India, subject to the same stringent scrutiny as domestic products. The Federation noted that many imported formulations bypass these checks, compromising quality standards. To promote Make in India, CCFI advocates for restricting imports of finished formulations, thus encouraging local manufacturing and employment generation.
Economic and Employment Benefits of Supporting Domestic Industry
The Federation highlighted the heavy outflow of foreign exchange due to imports of finished products, which could be saved if the products were manufactured locally. Increasing customs duties and limiting imports would not only conserve foreign reserves but also activate India’s underutilized manufacturing capacity, create jobs, and stimulate indigenous research and development.
Chairman Deepak Shah’s Closing Appeal
In his letter, Chairman Deepak Shah reaffirmed CCFI’s commitment to collaborating with the government to safeguard and grow India’s agrochemical sector. He urged the Finance Minister to take swift and decisive action by revising customs duties and strengthening import regulations to ensure the long-term sustainability of domestic manufacturers. Such measures, he emphasized, are essential to protect farmers, promote self-reliance, and realize the vision of Atmanirbhar Bharat.