How to Start an Agrochemical Business in India?

Agriculture is the backbone of India’s economy with more than 60% of the population depending on it for their livelihood. The country is the world’s second-largest food producer and is projected to become the top producer by 2030. The agrochemical industry is a critical part of the agricultural ecosystem and offers significant business opportunities for companies looking to enter the Indian market.

The Indian agrochemical market is estimated to be worth $4.3 billion and is expected to grow at a CAGR of 9.6% to reach $6.8 billion by 2025. The increasing use of pesticides and fertilisers in agriculture drives the market and the government’s initiatives to boost agricultural productivity. Moreover, the growing demand for food and the need to ensure food security further fuel the demand for agrochemicals in India.

Companies looking to enter the Indian agrochemical market must have a comprehensive understanding of the opportunity, the challenges, and the regulations governing the industry. This guide provides an overview of the agrochemical industry in India and discusses the steps to start an agrochemical business in India.

Steps to start an agrochemical business in India

1. Research the agrochemical market in India: When looking to enter the Indian agrochemical market, it is essential to have a comprehensive understanding of the opportunity. The first step is to research the market and understand the trends, drivers, and challenges shaping it.

2. Understand the regulation of the agrochemical industry: India’s agrochemical industry is subject to several regulations. Understanding these regulations and how they will impact your business is important.

3. Find a niche market for your agrochemical products: There are several different agrochemical products on the market. It is important to find a niche market for your products. This will allow you to focus your marketing and sales efforts and compete in the market better. 

4. Register your business with the Indian government: To do agrochemical business in India, you will need to register your company with the Indian government. This can be done through the Ministry of Corporate Affairs.

5. Obtain the necessary licences and permits: A number of licences and permits are required to operate an agrochemical business in India. These include a licence from the Central Insecticides Board and a permit from the Pollution Control Board.

6. Set up your manufacturing facility: If you are manufacturing your agrochemical products, you will need to set up a manufacturing facility. This facility must meet the requirements of the Central Insecticides Board and the Pollution Control Board.

7. Develop a marketing and sales strategy: Once you have your products, you will need to develop a marketing and sales strategy. This strategy should focus on your target market and include traditional and online marketing channels.

8. Establish relationships with distributors: To sell your products in India, you must establish relationships with distributors. These distributors will help you to reach your target market and sell your products.

9. Register your products with the Central Insecticides Board: All agrochemical products sold in India must be registered with the Central Insecticides Board. This registration process can take up to six months.

10. Follow the guidelines of the Pollution Control Board: The Pollution Control Board has several guidelines that agrochemical businesses must follow in India. These guidelines relate to agrochemical products’ storage, handling, and use.

11. Set up a distribution network: The next step is to set up a distribution network in India. The distribution network should be designed to reach the target audience.

12. Launch marketing campaigns: Once the business is up and running, it is important to launch marketing campaigns to promote agrochemical products. The marketing campaigns should be designed to reach the target audience.

13. Evaluate the business: The last step is to evaluate the agrochemical business and make changes as necessary. This will help ensure that the business is profitable and can meet the target audience’s needs.

Final Thoughts

The agrochemical industry in India is subject to a number of regulations. However, by understanding these regulations and taking the necessary steps to comply with them, it is possible to set up a successful agrochemical business in India. The key to success is to find a niche market for your products, and to develop a marketing and sales strategy that focuses on this target market.

Also, Read- How to Start your Business: Six Significant Steps

Author-Achal Chaurasia


A young businessman who has been in the line of entrepreneurship for quite a few years. He is an active learner and loves to know more about new technological developments coming up as well as how they can be put to great use to yield better results for society.

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