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Jeet B Bhayani (SEBI RA)

15th Sep · SEBI-Registered Analyst

India's agrochemical exports have almost tripled over the last ten years, increasing to US$ 3.3 billion in FY25 from US$ 1.3 billion in FY15, positioning the nation as the third-largest exporter following China and the United States, according to a report by the Agro-Chemicals Federation of India (ACFI) and Deloitte. The report emphasized the necessity for policy backing to maintain this growth momentum. ACFI has recommended that the government implement a Production Linked Incentive (PLI) scheme and tax exemptions for the sector, highlighting that these initiatives might lessen reliance on imports of essential molecules and promote the establishment of large-scale manufacturing centers. It additionally highlighted the significance of improved collaboration between public and private sectors in research and development, as well as increased support for micro, small, and medium enterprises (MSMEs), to boost India’s competitiveness on a global scale. The value of the domestic agrochemical market was approximately Rs. In FY24, 69,000 crore (US$ 7.82 billion) is projected, with exports representing 51% in value and domestic formulations 49%. The market is primarily controlled by multi-source generics, which hold an 80% share, and this portion is anticipated to increase as additional products become off-patent worldwide. In FY24, insecticides represented 41% of the market, with herbicides at 22% and fungicides at 21%, while plant growth regulators, biostimulants, and seed treatment products comprised the remainder. Herbicides experienced a compound annual growth rate (CAGR) of 10% from FY21 to FY24, establishing it as the fastest-growing category. Eight crops such as rice, cotton, wheat, soybean, chilies, grapes, sugarcane, and gram account for almost 65% of local demand, with Maharashtra, Goa, Andhra Pradesh, Telangana, and Madhya Pradesh at the forefront of consumption

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