Ahead of the budget, Crop Care Federation of India, representing major players in the agrochemical industry, has called for an increase in import tariffs to counteract the dumping of chemicals from China.
Harish Mehta, a senior advisor to the federation, emphasized the need to raise import tariffs by 7.5% to mitigate the effects of Chinese predatory pricing and monopolistic practices. He stated that such measures would protect the domestic chemical industry, a significant contributor to the country’s GDP and exports.
The federation suggested that an increase in tariffs between 5% and 7.5% could help level the playing field for local manufacturers. The industry highlighted that while India’s chemical sector was trade surplus in 2020-21, it faced a $17 billion trade deficit in FY23, attributing this change largely to unfair trade practices by foreign players, particularly from China.
Estimates indicate that the global chemicals industry is valued at $5,000 billion, with India’s share at $220 billion as of 2022. In its representation, the federation also advocated for the fast-tracking of trade remedy measures, including mandatory BIS standards for specialty chemicals and agrochemicals by relevant ministries.
As reported by the economictimes.indiatimes.com, additionally, the federation called for expedited regulatory approvals by ministries of agriculture, health, and environment, favouring domestic manufacturing projects. The industry also proposed the introduction of a production-linked incentive (PLI) scheme to strengthen domestic manufacturing and supply chain capabilities.
