Agrochemical body ACFI seeks ₹5,000-7,500 crore programme for the sector
Agro Chem Federation of India (ACFI), an association of pesticides manufacturers, has urged the government to introduce a targeted and time-bound policy framework for the sector, including a ₹5,000-7,500 crore support programme for upstream manufacturing. Such a plan will help achieve self-reliance in upstream agrochemical technicals and intermediates, neutralise Chinese advantages in utility costs and promote backward integration, it said.
Releasing a knowledge paper titled “Redefining Indian Crop Protection through Innovation: From Scale to Science”, prepared by KPMG for the industry body, ACFI said that 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,” said Kalyan Goswami, ACFI’s Director General.
The KPMG report has emphasised that the objective of the industrial policy should not be permanent protection or subsidy dependence but must focus on correcting clearly identifiable ecosystem disadvantages that reduce manufacturing competitiveness relative to global peers.
ACFI Chairman Rahul Dhanuka said: “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.”
The KPMG report recommends a 7-8 year support period, allowing 2-3 years for plant commissioning followed by sustained production support. The proposed framework must include graded investment thresholds to cover both large companies and MSMEs, for greenfield and brownfield expansion. It has also called for PLI-style incremental sales incentives, utility subvention like power/effluent subsidies and capital grants for specialised R&D.
The report also suggests 5-8 per cent incentive on incremental sales, 30-40 per cent subsidisation 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 commercialisation, enhancing supply-chain resilience and reducing structural cost disadvantages,” the report said.
Among other recommendations, it calls for specialised agrochemical manufacturing parks with shared utilities, cluster-based environmental infrastructure, long-term financing and selective backward integration in strategically important intermediates, ACFI said in a statement. The report also calls for a single-window regulatory framework with a unified digital platform for Centre and state approvals, transparent and time-bound processes, and clearer regulatory pathways for biological crop-protection products.
Last week, ACFI had organised a panel discussion at its AGM where many experts were invited to throw light on various aspects. Vishal Chaudhary, Scientific Adviser to the government, 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.”
Sweety Behera, Director, FSSAI, said that while innovation in agriculture has traditionally focused on increasing productivity, scientific advancement now needs to give equal priority to sustainability and consumer safety. Pushplata Singh, Director, TERI, said that biotechnology and nanotechnology can play an important role in making Indian agriculture more sustainable and climate-resilient. Rajvir Rathi, Director-Agricultural Affairs, Bayer CropScience, said that effective technology licensing and access frameworks can help bridge the gap between agricultural innovation and its adoption by Indian farmers. Gopinath Koneti, Partner and Senior Advisor, KPMG India, said that agricultural innovation must ultimately pass the test of economic viability, because farmers value solutions that are visible, measurable and, most importantly, profitable.