One of the major challenges today is the rampant availability of counterfeit, duplicate, and adulterated agricultural inputs, says R G Agarwal, Chairman Emeritus, Dhanuka Agritech Ltd. Spurious fertilisers, pesticides, and seeds not only result in crop failures but also cause severe income losses, driving farmers further into debt, he notes. In an interaction with ET Digital, Agarwal talks about the fertiliser industry, global tariffs, trade tensions, and more. Edited excerpts:
The Economic Times (ET): What’s your perspective on China’s recent decision to ease restrictions on fertiliser exports to India? Also, what steps can India take to safeguard its supply chain and prevent such disruptions in the future?
R G Agarwal (RGA): The easing of restrictions on fertiliser supply by China is good news for India’s farming community. The earlier suspension of exports had caused disruptions, including short-term supply gaps and high input costs. The incident also highlighted the vulnerability of our supply chain when we depend too much on one nation for such basic inputs.
India should view this as an opportunity to develop resilience moving forward. Import source diversification in cooperation with sources in other countries may be a good initiative in the short term, complemented by indigenous capacity development through incentives for fertiliser manufacturing and rare earth processing. Equally important is investing in R&D, recycling technologies, and the National Critical Mineral Mission, which will help us reduce reliance on imports.
ET: Given the shifting global trade landscape and the recent tariff measures by the US, do you anticipate any impact on your input sourcing, export strategies, or overall cost structure?
RGA: The new global trade situation, along with recent US tariffs, can affect where we source very small quantities and how we export products, especially agrochemicals, with dependence on imported raw material. In the short term, the effect on India’s farm input business might not be spectacular, but if trade barriers continue to rise, it could lead to higher costs, longer lead times, and changes in global prices. To reduce risks, we are focusing on getting materials from alternative sou ..
For exports, venturing into new geographies and leveraging India’s strong manufacturing capability can help offset slowdowns in tariff-hit regions. Effective supply chain management and operational efficiency will be key to keeping costs intact and remaining competitive in the market. In the pesticides sector, an advantage is the availability of multiple substitute products registered with the Ministry of Agriculture, which minimises the impact of US tariffs. Dhanuka is new to exporting, so the process is incremental, and we are taking our time to learn and adapt to the new global trade situation.
ET: With the 2025 Kharif season now underway, how do you view the current demand for agri inputs and the readiness of farmers?
RGA: With the 2025 Kharif season in progress, demand for quality agri inputs is showing healthy momentum, driven by timely monsoon rains in most regions and improved reservoir levels. Farmers are actively procuring quality seeds, fertilisers, and crop protection solutions to optimise yields, particularly for paddy, pulses, and oilseeds. However, the current regulatory restrictions have created an imbroglio, rendering huge inventories of biostimulants unmarketable.
This supply disruption is ill-timed, as both the kharif and ensuing rabi seasons are at stages most responsive to these products. The inability to deliver this innovative technology to farmers is a significant challenge to agricultural productivity this season. There is a noticeable shift towards adopting advanced, water-efficient, and eco-friendly solutions to manage input costs and improve productivity. While certain regions face local weather challenges, overall sentiment remains positive. Adequate supply chain readiness, timely availability of inputs, and technical guidance from agricultural experts ensure that farmers enter the season well-equipped to maximise crop performance and profitability.
ET: What impact has this year’s monsoon had on your business operations and sales outlook for the Kharif season?
RGA: This year’s monsoon has been largely favourable, with a timely onset and well-distributed rainfall across most agricultural belts, creating conducive conditions for healthy crop growth during the Kharif season. Adequate soil moisture and favourable weather have encouraged farmers to expand acreage under key crops, such as paddy, cotton, soybean, groundnut, and horticultural crops, which in turn are driving demand for crop protection solutions.
The consistent rainfall has also increased the risk of pests and diseases in certain regions, prompting farmers to adopt preventive and advanced agrochemical applications. While isolated pockets faced challenges due to excessive rainfall, leading to short-term field inaccessibility, the overall impact on our operations has been positive. With strong farmer demand, effective channel stocking, and timely product availability, we anticipate healthy growth in sales over last year’s Kharif season.
ET: How does Dhanuka Agritech customise its crop input solutions to help farmers mitigate the impact of mandi price fluctuations?
RGA: Our crop input solutions are designed to help farmers achieve maximum yield and profitability, even amid fluctuating mandi prices. We emphasise marketing high-yielding, cost-effective, green chemistry-based new technology inputs that improve both the quality and market value of crops, enabling farmers to earn higher returns. Our recommenda ..
Recently, in collaboration with PDKV Akola, Dhanuka conducted seed-to-seed demonstrations on soybean and groundnut crops. These demonstrations resulted in a 17% increase in soybean yield and an impressive 81% increase in groundnut yield using Dhanuka’s technologies.
Our approach is based on integrated nutrient and pest management, water-saving technologies, and sustainable agriculture that provide resilience to market risk.
ET: Is Dhanuka adopting any traceability solutions to help farmers verify and access genuine products?
RGA: Yes, we have implemented robust traceability solutions to help farmers verify and access genuine products with ease. Every product pack is marked with unique identification codes, such as QR codes or serial numbers, allowing farmers to authenticate inputs instantly through mobile scanning or helpline verification. This system effectively combats counterfeit agri inputs,protecting both crop yields and farmer investments.
Once verified, farmers can access detailed product information, usage guidelines, and safety instructions via digital platforms. To ensure widespread adoption, we conduct awareness campaigns and field demonstrations, working closely with over 1,500 field staff and collaborating with ICAR KVKs.
During the 15-day Viksit Krishi Sankalp Abhiyan, our team, along with various KVKs, actively participated in village meetings and training programmes to educate farmers on the importance of purchasing only from trusted sources. We advise farmers to always check for QR codes, scan them before buying, and ensure purchases are made against proper bills.
ET: What regulatory or enforcement support would you like to see from the government to curb the spread of fake pesticides and agrochemicals?
RGA: The biggest challenge today is the rampant infiltration of counterfeit, duplicate, and adulterated agricultural inputs in the market. These fake fertilisers, pesticides, and seeds cause crop failures and huge income losses, and they push farmers into debt traps. We regularly encounter such cases. With the agriculture department’s support, police raids are conducted, and culprits are taken to task.
To combat this menace effectively, the government must enforce stricter penalties and faster legal actions. Mandatory traceability with QR code verification on every product pack is vital. Regular market inspections, random lab checks, and robust farmer awareness campaigns need to be intensified.
Streamlining product registration will fast-track the launch of genuine, innovative products. At Dhanuka, we circulate posters, videos, and other materials at the grassroots. Farmers can also reach a helpline at our Palwal R&D centre for queries, including via WhatsApp with crop and product pictures. Our field staff follow up personally when needed.
Fake inputs are an invisible but devastating cause of crop loss and farmer distress. Strong enforcement combined with public-private partnerships is essential to protect farmers’ livelihoods and ensure sustainable agriculture.
Taking strong cues from Rajasthan, where State Agriculture Minister Kirodi Lal Meena raided over three dozen factories and seized fake material worth crores while maintaining secrecy, other states should replicate such decisive actions.
The government should form a multi-departmental central task force to inspect every factory and manufacturing site. Non-compliant units must have their licences revoked on the spot, similar to audits in the pharmaceutical sector, where licences are cancell ..
It is crucial to mandate QR codes on all agri inputs and build a blockchain-enabled integrated traceability system. This would trace every pack from manufacturer to farmer, enabling quick complaint resolution and ensuring authenticity.
Lastly, a nationwide campaign, ‘Jago Kisan Jago’, similar to ‘Jago Grahak Jago’, is needed to raise farmer awareness. Under our MOU with ICAR, we have developed video films urging farmers to buy inputs only against bills and verify authenticity by scanning QR codes. These have been shared with the Ministry of Agriculture, which will roll out similar awareness initiatives.
Together, these measures will create a transparent, trustworthy ecosystem delivering genuine, high-quality agricultural inputs to farmers and safeguarding India’s agricultural growth.
ET: How is Dhanuka helping MSMEs grow and supporting farmers and FPOs as they scale?
RGA: Dhanuka supports MSMEs, farmers, and FPOs by providing quality crop protection solutions, advanced technologies, and agronomic expertise that drive sustainable growth. In FY 2024-25, our training programmes reached over 10 million farmers, collaborating closely with 11 ATARIs, ICAR, KVKs, more than 100 crop-wise research stations, and 15 agricultural universities—significantly enhancing enhancing technical knowledge and market competitiveness.
For farmers and FPOs, we offer customised crop advisory services, demonstration plots, and awareness campaigns to encourage the adoption of high-yielding, cost-efficient, and eco-friendly practices, along with timely access to genuine agricultural inputs.
By integrating technology-driven solutions with strong field-level engagement, we empower every link in the agricultural value chain, ensuring measurable growth for small enterprises and farming communities alike.
Additionally, we actively work with several FPOs, providing not only agri inputs but also essential support in registering the FPOs and offering basic training to build their operational capacity. Our collaboration with ICAR and its KVKs has rapidly expanded our reach, helping us raise awareness about agri-solutions among farmers.
Source Name : Economic Times