20 March 2026, New Delhi: CropLife India has raised concerns over the potential impact of the ongoing conflict in West Asia on India’s pesticide industry. The association has warned that disruptions in global supply chains and key shipping routes could significantly increase input costs and create supply shortages during a critical agricultural season.
Ankur Aggarwal
According to Mr. Ankur Aggarwal, Chairman of CropLife India and Executive Chairman & Managing Director of Crystal Crop Protection Ltd., the ongoing geopolitical tensions are expected to drive up input costs for the crop protection industry by 20–25 percent. This increase is likely to be passed on to farmers, thereby raising the cost of cultivation.
He further cautioned that disruptions in logistics and raw material availability may lead to shortages of certain crop protection products at a crucial time, potentially affecting both crop yield and the quality of agricultural produce. Such developments could have a cascading impact on farm incomes and overall agricultural productivity.
The industry is also likely to witness reduced capacity utilisation across technical and formulation plants during this period. This slowdown may adversely impact industry revenues and employment, particularly affecting micro, small, and medium enterprises (MSMEs) that form a significant part of the supply chain.
Highlighting the need for policy support, Mr. Aggarwal urged the government to consider providing incentives, especially in the energy sector, to strengthen domestic manufacturing capabilities and offset rising costs. He emphasised that boosting local production would be key to ensuring resilience in the face of global disruptions.
The association’s assessment does not pinpoint any specific product shortages, but signals a general rise in costs across the crop protection industry. The association also flagged the risk of increased circulation of illicit, counterfeit, or substandard crop protection products in the market due to supply gaps and price volatility. It called for heightened vigilance and stronger enforcement mechanisms to curb such practices and safeguard farmers.
Key Takeaways
CropLife India warns that geopolitical tensions in West Asia may increase agrochemical costs in India by 20–25%.
Supply chain disruptions could lead to shortages of crop protection products during a critical agricultural season.
Mr. Aggarwal emphasizes the need for government incentives to bolster domestic manufacturing and mitigate rising costs.
The association alerts about potential risks of counterfeit products due to market volatility and supply gaps.
Overall, the situation may negatively impact agricultural productivity and the income of farmers.
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