Supply Disruptions, Cost Surge and Risk of Counterfeits: CropLife India Sounds Alarm
CropLife India warns West Asia conflict may raise pesticide costs by 20-25%, disrupt supplies, reduce capacity utilisation, and increase counterfeit risks, potentially impacting farmers, crop yields, industry earnings, and MSMEs.
CropLife India, representing leading research-driven crop protection companies, today issued a statement on the impact of ongoing conflict in West Asia on the Indian Pesticide industry.
“The disruption in supply chains and key shipping routes due to the conflict is likely to impact input costs by 20 - 25% for the crop protection industry, leading to a rise in costs for the farmers accordingly. The disruptions may lead to shortage of certain crop protection products during a critical agriculture season, impacting yield and quality of produce,” said Mr. Ankur Aggarwal, Chairman of CropLife India and Executive Chairman & Managing Director of Crystal Crop Protection Ltd.
“The industry is expected to see lower capacity utilisation in this period across technical and formulation plants and this may affect industry earnings and employment as well, particularly among the MSMEs,” he noted. “At this juncture, the industry requests for support and incentives on the energy front to enhance local production and capacity”.
Mr. Ankur Aggarwal reiterated CropLife India’s commitment to working closely with the Government of India to support a science-based, predictable and globally aligned regulatory environment that promotes innovation while safeguarding farmer interests, consumer safety and environmental sustainability.
“The supply gaps and volatility could spur circulation of illicit, counterfeit or substandard products, therefore it is critical that we remain vigilant and activate all monitoring mechanisms,” he added.
About CropLife India
CropLife India is committed to advancing sustainable agriculture and it is an association of 17 R&D driven member companies in crop protection. We jointly represent ~ 70% of the market and are responsible for 95% of the molecules introduced in the country. Our member companies have annual global R & D spend of 6 billion USD and are firmly committed to engaging with the farming community to enable Safe, Secure Food Supply.
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