India’s agrochemical export setup for moderate rebound in fiscal 25: rubix report
According to an industry report from Rubix, India’s agrochemical exports are expected to rebound moderately in the fiscal year 2025 and increase demand and inventory normalization. Compared to the previous year, India’s agrochemical exports fell sharply by nearly 22% in fiscal 2024, mainly due to global inventory sales, increased price competition in China and demand breeding in key export markets.
The report said global distributors reduced their purchases to manage excess stocks as prices fell. Meanwhile, Chinese suppliers re-entered the market at positive prices, reducing the competitiveness of India’s export volume.
Furthermore, unstable weather patterns affect agricultural activities in importing countries, further weakening demand.
However, with global inventory stabilization, demand stabilized, exports are expected to recover in the coming years as agricultural cycles improve, and Indian manufacturers adapt to cost-effective production and diversified portfolios.
As a result, trade surplus (the difference between imports and imports) fell from $3.6 billion in fiscal 2023 to $2.8 billion in fiscal 2024 to $2.3 billion in fiscal 2025 (April 2024 to February 2025).
The report added that highlighting factors supporting exports, herbicides have become the leading export segment with an annual growth rate of 20% from fiscal 2020 to fiscal 2025.
The share of herbicides in total agrochemical exports increased from 31% to 37% over the same time frame.
According to the report, this growth is driven by cost-effective manufacturing in India, the increased global demand for affordable herbicides and the scarcity and increasing costs of the agricultural labour, making herbicide-based weed control a more viable option for farmers.
The export landscape shows that the concentration of major markets is increasing, as the top five export destinations account for more than 50% of pesticides and fungicides, while the herbicides account for 71%.
It is worth noting that the United States and Brazil have maintained their position over the past five years as the highest export destination for pesticides and fungicides.
However, in fiscal year 2025, Japan displaced Brazil and became the second largest export destination for herbicides.
