CropLife India opposes govt's plan to double import duty on agrochemical formulations to 20 pc

Almost all pesticides formulations that are being imported are based on newer, safer and better chemistries, and provide farmers' with a whole new range of products for fighting the newer challenges posed by pests and diseases, it said. "CropLife India strongly urges the government not to differentiate formulations from the active grade pesticides for the purpose of levying customs duty," the statement said.

Industry body CropLife India on Thursday expressed concern over the government's proposal to double customs duty on agrochemical formulations to 20 per cent, saying it is an "ill-conceived" idea and against the interest of farmers. CropLife India, an association of 15 research and development driven crop science companies in the country, said the proposed move will lead to non-availability of innovative products in India.

"The idea is ill-conceived and not based on ground realities," CropLife India Chief Executive Officer (CEO) Asitava Sen said in a statement. The proposal to enhance customs duty on formulated products will reduce 'Ease Of Doing Business', highlight uncertainty of Indian policies and send out wrong signals to investors in this sector, he said.

"...such imported formulations largely pertain to new molecules that lend better sustainability, pesticides' resistance management, and environmental safety to the users. Taxing them at higher rates will discourage introduction of newer chemistries, leading to loss of viable newer options at the hands of the farmers," the industry body said. Almost all pesticides formulations that are being imported are based on newer, safer and better chemistries, and provide farmers' with a whole new range of products for fighting the newer challenges posed by pests and diseases, it said.

"CropLife India strongly urges the government not to differentiate formulations from the active grade pesticides for the purpose of levying customs duty," the statement said. Sen said the association fully supports the government's 'Make in India' programme, but it should not come at the expense of the country's farmers to compete globally.

Imports of pesticide formulations stand at Rs 1,800 crore, which is hardly 20 per cent of total agrochemicals imported in India, he added. According to CropLine India, farmers need newer molecules in view of the changing cropping patterns, climate change, invasion by invasive pests and extremely narrow existing product portfolio which makes it essential that they are provided with a bigger and better range of products.