By:- Mr. Kalyan Goswami, DG Agro Chem Federation of India (ACFI)
In light of the ongoing geopolitical situation,we wholeheartedly appreciate the government’s proactive measures and timely interventions to support the nation’s economic and industrial stability and ease of doing business with its decision to exempt various products from the Customs Tariff Act, 1975, through G.S.R. 246(E). These forward-thinking actions are vital for the agrochemical sector to ensure that Indian farmers have an uninterrupted supply of vital agri inputs. Further, we need clarification on whether cargo currently held in bonded facilities in India is eligible for reduced duty rates.
“ACFI would also strongly recommend the immediate inclusion of several essential chemicals, specifically acetone, acetonitrile xylene, ETFA, and heptane, in the relevant statutory list to ensure continued operational stability across the sector.”
The industry strategy of utilising forward contracts to rapidly build inventory is resulting in hasty buying behaviour, which is exerting pressure across all material supply chains. Current industry inventory levels are projected to be exhausted by August- september 2026 and new inventory will be required soon after. The situation is worsening as vessels are experiencing delays against their scheduled arrival in India. This necessitates extending the order to quarter to mitigate the impact of these delays on material availability.
