CropLife India, the leading association of 17 R&D-driven crop science companies, urges the Government of India to use the Union Budget [2026–27] as an opportunity to further strengthen innovation and on-ground adoption in agriculture, while addressing rising farm input costs and emerging risks from climate change and pest resistance.
The association welcomes the Government’s continued focus on enhancing farmers’ income and promoting innovation across the agricultural value chain. CropLife India notes that recent GST 2.0 reforms, including lower GST on tractors and other agricultural products, demonstrate the Government’s intent to ease cost pressures and improve access to modern farm technologies.
However, farmers are today continuously operating in an increasingly
complex and dynamic risk environment. Climate variability is changing
pest incidence and intensity, resistance is reducing the effectiveness
of older chemistries, and global food safety and residue standards are
becoming increasingly stringent. These trends make timely access to
modern, efficient crop protection products critical for sustaining
productivity and farm incomes
CropLife India emphasises that targeted investment in research and development is
central to addressing these challenges. Newer, low-dose and
high-efficiency products enable better results per application, reduce
overall chemical load, and improve residue outcomes, while supporting
the broader objective of “Atmanirbhar Bharat” through domestic capability building.
“Climate change and insect resistance are already affecting
farm-level outcomes. Encouraging focused R&D and enabling faster
adoption of modern crop protection solutions will help farmers manage
costs more efficiently and protect yields,” said Mr. Ankur Aggarwal, Chairman, CropLife India and Executive Chairman & Managing Director, Crystal Crop Protection Ltd.
Key asks
Budget-linked priorities:Â CropLife India urges the
Government to consider the following measures through the Union Budget
to strengthen innovation and last-mile adoption:
- Providing a 200% weighted deduction on R&D expensesfor agrochemical companies, with eligibility extended to manufacturing units with a minimum fixed asset base of â‚ą50 crore and annual R&D expenditure of at least â‚ą10 crore, to encourage sustained investment in innovation and accelerate the introduction of newer, safer, low-dose products.
- Supporting a coordinated national push to strengthen agricultural extension services, backed by central funding and enabling frameworks, to scale Good Agricultural Practices (GAP), improve residue management, enhance farmer safety, and promote responsible use.
Broader policy reforms:Â In addition, CropLife India
encourages the Government to take up complementary policy measures
aligned with easing farm input costs and strengthening the sector:
- Reducing GST on agrochemicals from 18% to 5%, to align essential crop protection inputs with other agricultural inputs and improve affordability for farmers.
- Maintaining a stable and uniform basic customs duty for
both technical raw materials and formulations, to ensure predictability
and avoid cost distortions that could restrict access to modern crop
protection products.
CropLife India reiterates its commitment to working closely with the
Government of India and State Governments to support science-based,
predictable and globally aligned policies that advance farmer incomes,
sustainable agriculture and long-term food security.
About CropLife India
CropLife India is committed to advancing sustainable agriculture and
it is an association of 17 R&D driven member companies in crop
protection. We jointly represent ~ 70% of the market and are responsible
for 95% of the molecules introduced in the country. Our member
companies have annual global R & D spend of 6 billion USD and are
firmly committed to engaging with the farming community to enable Safe,
Secure Food Supply.
