By Susheel KumarIndian agriculture stands at an important inflection point. On the one hand, the country speaks with confidence of becoming a global food powerhouse, a trusted supplier to the world and a hub for agricultural manufacturing. On the other, the policy ecosystem around crop protection, the backbone of yield security, farmer resilience and food price stability, is undergoing a period of active transition. As the Union Budget 2026 approaches, this moment offers an opportunity to bring sharper clarity, confidence and a renewed commitment to science-based decision-making.
Over the past year, public discourse on crop protection has been particularly animated. Pesticides are often discussed primarily through the lens of risk, while the role they play in preventing losses, protecting farmer incomes and containing food inflation receives far less attention. This imbalance in the debate comes at a time when Indian farmers continue to lose crops worth more than ₹2 lakh crore annually to pests, diseases and weeds, losses that no country aspiring to food security and export leadership can afford to overlook.
A Regulatory Reset That Must Get the Balance RightThe intent around the proposed Pesticides Management Bill, 2025 marks a significant move as it aims to align India’s regulatory framework with contemporary realities. The intent to strengthen oversight, improve compliance and protect farmers and consumers is both timely and necessary. As with all foundational reforms, however, the true impact will depend on how effectively these intentions are translated into practice.
For an innovation-driven sector, predictability and proportionality matter as much as stringency. A regulatory system that is risk-based, science-led and time-bound does not weaken safety; it strengthens it by encouraging responsible participation, greater investment in stewardship and quicker adoption of safer, newer technologies. India’s crop protection sector, led by R&D-driven companies that account for nearly 70% of the market and have introduced 95% of the molecules used in the country, invest over USD 6 billion annually in global research and development. Ensuring that this innovation pipeline reaches Indian farmers requires a regulatory approach that consistently recognises evidence alongside precaution.
The proposed Pesticides Management Bill can therefore be powerfully complemented by a Budget that supports regulatory capacity, modern testing infrastructure and efficient evaluation timelines. Together, these measures can ensure that the new framework functions as a bridge to safer agriculture rather than an unintended bottleneck.
As Budget 2026 draws closer, the crop protection sector is seeking a clearer acknowledgement of a fundamental economic reality: safeguarding yields is as critical as producing them and hence crop protection products play an indispensable role in sustaining productivity. Recognising them as essential agricultural inputs would better reflect their contribution to farm resilience and national food security.
GST Rationalisation: A Farmer-Centric CorrectionOne of the most immediate expectations from Budget 2026 is the rationalisation of GST on crop protection products to a maximum of 5%, bringing them in line with other fertilisers (biostimulants/ biologicals). Such a step would ease cost pressures on farmers and reinforce responsible usage by improving access to legitimate, high-quality products.
Seen in this light, GST rationalisation is not a concession to industry, but a farmer-centric correction, one that strengthens productivity, safety and compliance across the agricultural value chain.
Manufacturing Opportunity in a Reordering WorldGlobally, agrochemical supply chains are undergoing a structural realignment, with companies actively diversifying manufacturing bases and reducing concentration risks. India is well positioned to benefit from this shift, provided policy ambition is matched with enabling fiscal and industrial frameworks.
A targeted Production Linked Incentive framework for the manufacture of new crop protection molecules could help attract global-scale investments, deepen domestic manufacturing capabilities and integrate India more firmly into international supply chains. This is not merely about import substitution; it is about positioning India as a reliable and competitive producer for global markets.
Backing Innovation with Fiscal IntentCrop protection innovation is science-intensive, capital-heavy and inherently long-term. Developing a new molecule can take more than a decade, demanding sustained investment and regulatory certainty. While India has made strides in recognising innovation across sectors, there remains scope to further strengthen fiscal support for agricultural R&D.
Allowing a 200% weighted tax deduction on recognised research and development expenditure would reinforce the message that agricultural innovation is central to India’s growth story. Equally important is recognising stewardship as an extension of public policy. Investments made by companies in farmer training, resistance management and safe-use education directly support food safety and environmental outcomes. A 150% tax deduction on stewardship expenditure would align fiscal policy with sustainability objectives already embedded in national priorities.
As Budget 2026 is finalised, the choice before policymakers is a constructive one. India can reinforce crop protection as a strategic lever for farmer resilience, export growth and food security, ensuring that fiscal and regulatory frameworks move in step with national ambition. The direction taken will shape not only industry outcomes, but the long-term stability and competitiveness of India’s agricultural economy.
(Susheel Kumar is Managing Director, Syngenta India)
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