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Govt Approves Sale of Agro-Chemicals Through Online Platforms

The Union government amended the Insecticide Act to allow pesticides to be sold online in India. This latest move is expected to increase competition in the pesticide market, resulting in lower pesticide prices.

Shivam Dwivedi
With the official approval of e-commerce, the agrochemicals industry will experience a fresh start.
With the official approval of e-commerce, the agrochemicals industry will experience a fresh start.

The country's online agrochemical trade is about to take off now that the Center has approved the sale of pesticides through an e-commerce company. Analysts predict that the Centre's most recent action will assist agrochemical producers in developing their online presence and attracting the attention of major e-commerce players such as Amazon and Flipkart, among others.

"A licensee may undertake the sale of any insecticide through an e-commerce entity for supply of insecticides to the doorstep of the farmers during the currency of licence," the Ministry of Agriculture and Farmers Welfare announced in a notification on November 24. "The licensee shall comply with the provisions of the Act and the rules made thereunder for the time being in force."

This announcement will increase agrochemical e-commerce, helping the industry and farmers. According to Kalyan Goswami, Director-General of the Agro Chem Federation of India, "This will be the new face of industry interface since it would significantly minimize the distance between the manufacturer and the farmers."

Farmers can choose from a wide range of options that include all product specifications, enabling them to do so with knowledge. Sales of counterfeit and misbranded goods would also decline. According to Goswami, farmers prefer to purchase directly from businesses, so quality manufacturers willing to reduce their operating costs in the form of margins will face a difficult road ahead of them. Agrochemical online sales in the nation are currently insignificant. Goswami asserts that the 86,000 crore agrochemical market, which includes exports, is expanding at a rate of 11–14% annually.

Agtech investor Hemendra Mathur predicts that the adjustment will increase supply chain investments and possibly attract online merchants like Amazon and Flipkart. It might also facilitate the introduction of new product categories and aid e-commerce companies in meeting demand quickly. In Mathur's opinion, the market potential is enormous because roughly one-third of the 15 crore farmers can place orders online.

For a while, the industry has been requesting official approval to engage in e-commerce. With the official approval of e-commerce, the agrochemicals industry will experience a fresh start. Reaching out to customers directly will be a great step. According to Rajesh Aggarwal, Managing Director of Insecticides (India) Ltd., "There may be new portals in this field, including from manufacturers and e-commerce companies like Amazon and Flipkart."

For a while, the industry has been requesting official approval to engage in e-commerce. With the official approval of e-commerce, the agrochemicals industry will experience a fresh start. Reaching out to customers directly will be a great step. According to Rajesh Aggarwal, Managing Director of Insecticides (India) Ltd., "There may be new portals in this field, including from manufacturers and e-commerce companies like Amazon and Flipkart."

"This is a major boost for the agritech industry and DigitalBharat projects," says the author. This notification update acknowledges that to increase productivity and double their income, Indian farmers must increasingly rely on technology. This is a significant and forward-thinking step toward Helping Farmers Win, AgroStar's CEO and co-founder Shardul Sheth. It's a big step in the right direction, says one. It now helps companies like ours,' BigHaat's Sateesh Nukala said.

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