Ahead of Union Budget 2026–27, CropLife India Calls for Stronger Push on Agri Innovation Amid Climate and Cost Pressures
28 January 2026, New Delhi: As India prepares for the Union Budget 2026–27, CropLife India has urged the Government to reinforce support for agricultural innovation while addressing rising input costs and growing climate-related risks faced by farmers.
The association highlighted that Indian agriculture is operating in an increasingly uncertain environment marked by climate variability, shifting pest dynamics, resistance to older crop protection chemistries, and tightening global food safety and residue norms. These challenges, CropLife India noted, make timely access to modern and efficient crop protection solutions critical for sustaining farm productivity and incomes.
According to the association, targeted investments in research and development are essential to help farmers adapt to emerging challenges. New-generation, low-dose and high-efficacy crop protection products not only improve performance per application but also reduce overall chemical load and support better residue outcomes. Such innovation, CropLife India said, also aligns with the broader vision of Atmanirbhar Bharat by strengthening domestic scientific and manufacturing capabilities.
“Climate change and insect resistance are already impacting outcomes at the farm level. Encouraging focused R&D and enabling faster adoption of modern crop protection solutions can help farmers manage costs more efficiently while safeguarding yields,” said Mr. Ankur Aggarwal, Chairman, CropLife India, and Executive Chairman & Managing Director, Crystal Crop Protection Ltd.
Budget-linked priorities
Ahead of the Budget, CropLife India has outlined a set of fiscal and policy measures aimed at strengthening innovation and improving last-mile adoption. These include a proposal for a 200 per cent weighted tax deduction on R&D expenditure for agrochemical companies, with eligibility extended to manufacturing units having a minimum fixed asset base of ₹50 crore and annual R&D spending of at least ₹10 crore. The move, the association said, would encourage sustained investment and accelerate the introduction of safer, high-efficiency products.
The association also called for a coordinated national push to strengthen agricultural extension services, supported by central funding and enabling frameworks. Such efforts would help scale Good Agricultural Practices (GAP), improve residue management, enhance farmer safety, and promote responsible use of crop protection solutions.
Broader policy measures
In addition to Budget-related interventions, CropLife India recommended complementary reforms to ease input costs and improve policy predictability. Key among these is a reduction in GST on agrochemicals from 18 per cent to 5 per cent, bringing them in line with other essential agricultural inputs and improving affordability for farmers.
The association further emphasised the need for a stable and uniform basic customs duty on both technical raw materials and formulations to avoid cost distortions and ensure consistent access to modern crop protection products.
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