The price of agricultural chemicals in Nicaragua rose by 30% due to the tax increase

The Nicaraguan agrochemical market maintained significant and steady growth until 2018 and 2019. Currently, one of the main issues affecting the country's agrochemical market is social and political instability, as well as a 30% increase in the price of agrochemicals due to the tax policy, which significantly reduced the country's agrochemical imports in 2019

Nicaragua has limited production capacity for technicals and formulations, but there are many importers and distributors. Initially, local preparations focused on biologics and insecticides, mainly Pyrethroids and organophosphorus. Recently, there has been an increase in herbicide and fungicide formulation. 

The most important local distribution companies include Abrasa、AgriCentre、Agroinsumos del Tropica、Agrovvet Nicarao、Agro Alfa、Ramac、Cisa Agro、Servicio Agrícola Gurdián、Insecticidas San Cristóbal、Bellrod、BioQuim、Cindeco、DuWest、Foragro、Formunica、HanseAndina、Leiman Invest and Profiysa。

Major multinational companies in the country include Bayer, BASF, FMC, Syngenta, Helm and Jebagro. The Nicaraguan Association of Pesticide Producers and Distributors (ANIFODA) represents Nicaraguan agrochemical enterprises, and the market is dominated by imports from China, Guatemala, the United States and Costa Rica. However, products from Guatemala and Costa Rica typically use active ingredients purchased from China or India and are formulated in those countries before being re-exported.

Nicaragua outlook 

Agriculture has always been an important part of the Nicaraguan economy, employing 30.6% of the national labor force and producing 15.8% of the gross domestic product. Nicaragua's use of agrochemicals per unit area is high compared to other developing markets, similar to other Latin American countries such as Bolivia, Guatemala and Ecuador, AgbioInvestor said. However, Nicaragua has limited agro-chemical production capacity.

 AgbioInvestor also said that in Nicaragua, where illegal trade and counterfeit products have long been a problem, its intellectual property legislation is overseen by the Intellectual Property Registry (RPI).