India becomes third-largest agrochemical exporter with $3.3 bn exports

Agrochemical exports surged to $3.3 billion in FY25, making India the world's third-largest exporter as ACFI seeks policy support for growth momentum

India’s agrochemical exports nearly trebled in 10 years to $3.3 billion in FY25, up from $1.3 billion in 2014-15, making the country the third-largest exporter of agrochemicals after China and the US, a report by the Agro-Chemicals Federation of India (ACFI) and Deloitte released late last evening showed.

 

To sustain the momentum, ACFI has urged the government to introduce a production-linked incentive (PLI) scheme and tax holidays for the sector. It said these measures would reduce import dependence for key molecules and help establish agrochemical manufacturing hubs across India, thereby boosting domestic production.

 

The association, which represents all major agrochemical companies in India, also advocated for greater public-private cooperation in research and development and the strengthening of micro, small and medium enterprises (MSMEs).

 

 

The Indian agrochemical market is estimated at around Rs 69,000 crore in FY24, with exports accounting for 51 per cent by value and domestic formulations for 49 per cent. 

 

It is largely a multi-source generics market with an 80 per cent share. As more products go off-patent globally, the share of generics is likely to rise further.

 

The report said the Indian agrochemical market is dominated by insecticides (41 per cent share), followed by herbicides (22 per cent), fungicides (21 per cent), plant growth regulators (6 per cent), biostimulants (8 per cent) and seed treatment products (2 per cent) in FY24.

 

From FY21 to FY24, the insecticide segment grew at a compound annual growth rate (CAGR) of 6 per cent, fungicides at 8 per cent and herbicides at 10 per cent, making herbicides the fastest-growing segment in agrochemicals.

 

Eight crop segments—rice, cotton, wheat, soybean, chillies, grapes, sugarcane and gram—contribute about 65 per cent of the domestic agrochemical market.

 

In terms of geographies, the top state clusters for agrochemical sales include Maharashtra and Goa (22 per cent), Andhra Pradesh and Telangana (21 per cent), Madhya Pradesh (10 per cent), Karnataka (8 per cent), Uttar Pradesh and Uttarakhand (8 per cent), Tamil Nadu and Kerala (6 per cent) and Gujarat (5 per cent). Together, these account for around 75 per cent of the domestic agrochemical market.