Fertilizer industry most regulated, more than drugs, pharma or food, says Rajib Chakraborty, President of SFIA
Voicing disapproval at “over-regulation” and “multiple inspections carried out on micro-fertilizers manufacturers in India, the Indian Micro Fertilizers Manufacturers Association (IMMA) on Thursday sought “one licence” that was valid pan-India.
“The Fertilizer Control Order (FCO) has perhaps run its purpose. The origins of this order was at a time when fertilizer quality was a problem, shortages were there and food shortages were rampant. In this context, controlling fertilizers was perhaps important. In today’s context, managing the fertilizers is important. The element of control needs to become management. Just like FERA (Foreign Exchange Regulation Act), the regulation of foreign exchange, became the management, because things became much more open and transparent and that is kind of era we need to bring in terms of fertilisers,” said Rahul Mirchandani, President of Indian Micro Manufacturers Association (IMMA), a body representing manufacturers of micro-fertilizers.
The association advocates for government policies and advises on fertilizer laws. Mirchandani was participating in a panel discussion on “Fertiliser Control Order – Non Subsidised Fertilizers – Ease of Doing Business” organised by Soluble Fertilizer Industry Association (SFIA) held at Mahatma Mandir at Gandhinagar.
“Today if you look at the consumption of micronutrients in India, we are looking at a CAGR of 7.1 per cent which is higher than most other categories. When you talk of sustainability, chelated or inert fertilizers which deliver micro-nutrients to crops has become one of the fastest growing segments in the country,” Mirchandani said pointing out 65 per cent of the micro-nutrients are used in cereals and grains,” he said adding that “over regulation” was adding a compliance cost of 8-15 per cent to the product price which was being passed on the farmers. In FY 2025, the volume of consumption of micronutrients stood at 6.35 lakh tonnes.
Citing the challenges the manufacturers face, he said, “Despite being a very innovative and forward looking industry, we struggle with various issues. We need a separate licence in every state for the same product. We have physical depots in every State which adds cost to the product, We are today in an IGST regime where we can build and produce anywhere. What is the purpose in having a depot in every state and adding overheads. Multiple product registrations are taking place for every formulation. IGST billing exists, but movement control persists.
“Multiple inspections are taking place and inspectors at local level are given sweeping powers. When we look at FCO as part of the Essential Commodities, even a minor variation — for instance a spelling mistake on the label — are subject to criminal provisions. There is a need to simplify it. We need to move towards a one nation, one licence policy. It will ease up regulation,” he said, seeking a license that is valid pan-India, elimination of State-wide sale permission and a centralised digital product registry.
Moderating the discussion, Rajib Chakraborty, President of SFIA, said, “Fertilizer industry is the most inspected industry in the country. Such inspections are not even seen in drugs and pharmaceuticals or food industries. This is probably a distrust of the authorities on the manufacturers. How will we counter China’s dominance in specialty fertilizers in such a situation?”
