Union Finance Minister Nirmala Sitharaman will be presenting the Union Budget 2025 on February 1 in the Lok Sabha.
Expectations from the upcoming budget are pouring in from several sectors.
When it comes to the agrochemical sector, Vimal Kumar, Managing Director, Best Agrolife Ltd said, “India is on its way to becoming a global leader in agriculture, with the Ministry of Agriculture projecting a record-breaking Kharif food grain production of 1647.05 LMT for 2024-25—a remarkable increase from the previous year. This achievement owes much to the unwavering support of the Indian agrochemical industry. However, the challenges persist and to sustain this momentum and bolster India’s leadership in the agriculture and agrochemical sector we need robust government policies.”
“The 18 per cent GST on agrochemicals makes quality crop protection expensive for farmers. Reducing it to 5 per cent would make these products more accessible, boosting productivity and profitability. Additionally, India’s reliance on imports highlights the need for Production-Linked Incentive (PLI) benefits to encourage local manufacturing,” he added.
Kumar also said, “The increasing pest resistance demands innovative solutions but at the same time the rising raw material costs are a major challenge for industry. To support this, the government could reintroduce the 200 per cent income tax deduction on investments in R&D and registration studies. The PLI scheme and research linked incentives would create an ecosystem that drives innovation and develops solutions tailored to India’s agricultural needs.”
He also said, “The government can promote public-private partnerships to develop new crop protection molecules in India. These partnerships can help share the high discovery costs and boost domestic innovation. With institutional support, they can create a strong R&D ecosystem, reduce import dependence, and make India a leader in the global agrochemical market.”
Source: DH
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