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Key Points

India's agrochemical exports faced a 22% drop in FY24 due to global destocking and Chinese competition. The Rubix report predicts a rebound in FY25 as demand stabilizes and herbicide exports grow. Key markets like the US, Brazil, and Japan continue to dominate trade. Indian manufacturers are adapting with cost-efficient production to regain competitiveness.

Key Points: India Agrochemical Exports to Rebound in FY25 Says Rubix Report

  • FY24 exports fell 22% due to Chinese price competition
  • Herbicides drive recovery with 37% export share
  • US and Brazil remain top markets
  • Japan rises as key herbicide buyer
2 min read

India's agrochemical exports set for moderate rebound in FY25: Rubix report

India's agrochemical exports set for recovery in FY25 as global demand stabilizes, with herbicides leading growth, per Rubix industry analysis.

"Herbicides emerge as the fastest-growing export segment with 20% CAGR from FY2020 to FY2025 – Rubix Report"

New Delhi, June 22

India's agrochemical exports are expected to moderately rebound in the Financial Year 2025, with improving demand and inventory normalisation, according to an industry report by Rubix, which analyses industry data and trends.

India's agrochemical exports declined sharply in FY2024, by nearly 22 per cent compared to the previous year, primarily due to global inventory destocking, heightened price competition from China, and subdued demand in key export markets.

The report says that distributors worldwide reduced procurement to manage excess stock amid falling prices. At the same time, Chinese suppliers re-entered the market with aggressively priced products, making Indian exports less competitive.

Additionally, erratic weather patterns impacted agricultural activity in importing countries, further dampening demand.

However, exports are expected to recover in the coming years as global inventories stabilise, demand picks up with improved agricultural cycles, and Indian manufacturers adapt with cost-efficient production and diversified portfolios.

As a result, the trade surplus (difference between exports and imports) came down from USD 3.6 billion in FY2023 and USD 2.8 billion in FY2024 to USD 2.3 billion in FY2025 (April 2024- February 2025).

Highlighting the factors that support exports, the report added that herbicides have emerged as the leading export segment, experiencing the fastest growth at 20 per cent CAGR from FY2020 to FY2025.

The share of herbicides in total agrochemical exports increased from 31 per cent to 37 per cent during the same timeframe.

As per the report, this growth is driven by India's cost-effective manufacturing, rising global demand for affordable herbicides, and the increasing scarcity and cost of agricultural labour, making herbicide-based weed control a more viable choice for farmers.

The export landscape reveals a growing concentration in key markets, as the top five export destinations account for more than 50 per cent share for insecticides and fungicides and nearly 71 per cent for herbicides.

Notably, the US and Brazil have maintained their positions as the top export destinations for insecticides and fungicides over the past five years.

However, in FY2025, Japan displaced Brazil as the second-largest export destination for herbicides.

- ANI

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Reader Comments

R
Rajesh K.
Good to see the rebound forecast! But we must address the China pricing challenge strategically. Maybe government can provide more R&D incentives to our manufacturers? Our farmers also need affordable agrochemicals - hope domestic prices don't rise due to export focus.
P
Priya M.
The herbicide growth is interesting! With labor costs rising globally, this could be India's niche. But we must ensure environmental safety standards aren't compromised in the race for exports 🌱 #MakeInIndia
A
Amit S.
ज़्यादा निर्यात अच्छा है, पर हमें अपने किसानों को भी सस्ते कीटनाशक चाहिए। सरकार को एक्सपोर्ट और घरेलू जरूरत के बीच संतुलन बनाना चाहिए। (More exports are good, but our farmers also need affordable pesticides. Government should balance exports and domestic needs.)
S
Sunita R.
The weather impact on demand shows how climate change affects business too. Maybe Indian companies should invest more in climate-resilient agrochemical solutions? Could be a USP for global markets.
V
Vikram J.
While the report is optimistic, I'm concerned about over-dependence on few markets (US, Brazil, Japan). We need to explore African and Southeast Asian markets more aggressively to reduce risk.
N
Neha P.
The 22% drop last year was worrying, but glad to see recovery signs 👍 Hope our manufacturers are also focusing on organic alternatives - global trend is shifting towards sustainable farming. Could be next growth area!

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