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South Asia Supply Chain

35% of Indian Farmers Report Fake Agro-Inputs in Past Year

A 2025 Crisil Intelligence and ASPA report reveals 35% of Indian farmers encountered counterfeit agro-inputs in the past year, with 82% believing fakes have grown more common. Local retailers enabled 75% of counterfeit purchases, while farmers showed willingness to pay a 14% premium for verified inputs. ASPA documented 276 counterfeit incidents from 2018–2025, including 50 in 2018 and 17 in 2025. Fertilisers made up 40% of reported cases, and detection remains weak: only 58% of farmers feel confident identifying fakes.

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35% of Indian Farmers Report Fake Agro-Inputs in Past Year

According to chemicals.economictimes.indiatimes.com, a 2025 report by Crisil Intelligence and the Authentication Solution Providers’ Association (ASPA) finds that 35 per cent of surveyed Indian farmers reported encountering counterfeit agro-products at least once in the previous 12 months — a figure that underscores deepening erosion of trust in the agricultural input supply chain.

Retailers and Fragmented Distribution Enable Counterfeits

Local agri-input retailers serve as the primary conduit for fake products: among farmers who purchased counterfeit inputs, 75 per cent did so through neighborhood retail outlets. An additional 18 per cent traced purchases to informal supply chains. This vulnerability stems from market fragmentation — with multiple manufacturers, distributors, intermediaries, and retailers between producer and farmer — weakening traceability at every handoff point.

The report identifies Uttar Pradesh, Bihar, Madhya Pradesh, and Jharkhand as among the most affected states, while also flagging counterfeit pesticide activity in Karnataka, Haryana, Maharashtra, Tamil Nadu, and Andhra Pradesh. Retailer-sourced fake products were split geographically: 40 per cent came from local sources and 48 per cent from other states — confirming the issue spans interstate trade networks.

Farmers Value Authenticity Despite Price Sensitivity

Although counterfeit agro-inputs are priced an average of 24 per cent lower than genuine alternatives, farmers demonstrated strong willingness to pay for verification: respondents said they would accept a 14 per cent premium for inputs they could confirm as authentic — the highest such willingness across all sectors analyzed in the report.

This preference reflects risk awareness: fake fertilisers and pesticides can reduce yields, damage soil health, compromise crop protection, and raise cultivation costs. The report notes that 82 per cent of respondents believed counterfeit agro-products had become more common over the past year — signaling growing concern despite limited detection capacity.

Detection Gaps Persist Amid Rising Incidents

Only 58 per cent of farmers reported confidence in identifying counterfeit products. Packaging and labelling cues were cited by 63 per cent as the most common identification method, whereas just 26 per cent checked for authentication markers like holograms or traceability codes — revealing a critical gap between awareness and actionable verification.

ASPA’s counterfeit news repository recorded 276 incidents involving fake agrochemical products between 2018 and 2025. The annual breakdown shows 50 cases in 2018, 51 in 2019, 47 in 2020, 38 in 2021, 33 in 2022, 21 in 2023, 19 in 2024, and 17 in 2025. Fertilisers accounted for roughly 40 per cent of reported incidents.

Source: chemicals.economictimes.indiatimes.com

Compiled from international media by the SCI.AI editorial team.

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