A recent tender by a public sector firm for “Soluble Fertiliser” excluded all “Made in India” products, sparking concerns among grassroots associations. Indian manufacturers face heavy regulatory burdens that foreign suppliers, especially from China, avoid. This creates unfair competition and undermines the government’s push for self-reliance in fertiliser production.
Old rules hurt Indian makers
Public sector firms are bypassing Indian startups because they face strict regulations requiring multiple licences, offices, and warehouses in every state they supply. Imported fertilisers, mainly from China, avoid these hurdles with minimal paperwork, creating an uneven playing field.
The Fertiliser Control Order (FCO), designed decades ago to ensure quality and control supply, now restricts innovation and growth in the domestic fertiliser industry.
Grassroots voices call for reform
Dr Suhash Buddhe of IIM Nagpur says, “A single manufacturing unit is monitored by as minimum as 32 FCO inspectors, leading to excessive scrutiny and harassment.”
Jayantibhai Kumbhani from CAIP adds that no other industry faces such intense government oversight, pushing Indian entrepreneurs away and increasing import dependence. Vijay Thakur of OAMA Maharashtra calls for urgent reforms to support local fertiliser makers.
Calls for change
Vinod Goyal, National Secretary of SFIA, suggests a “One Nation, One License” system so Indian manufacturers can sell across states without repetitive licences. He also calls for limiting inspectors and creating a new law for non-subsidised fertilisers outside the Essential Commodities Act. These changes, he says, are crucial to fulfilling Atmanirbhar Bharat’s promise of self-reliance in agriculture.