Context:
The Indian Micro Fertilisizers Manufacturers Association (IMMA) has called for a complete overhaul of India’s fertiliser regulatory regime, citing high compliance costs, excessive inspections, and outdated provisions under the Fertiliser Control Order (FCO).
Key Highlights:
- Industry Demand:
- IMMA has urged the Centre to implement a “One Nation, One Licence” policy for micro-fertiliser manufacturers to eliminate the need for separate state-level licences.
- Outdated Framework:
- IMMA President Rahul Mirchandani said the Fertiliser Control Order (FCO) has outlived its original intent, similar to how FERA was replaced with FEMA to reflect a liberalised economy.
- Compliance Burden:
- Over-regulation leads to compliance costs of 8–15%, passed on to farmers. Micronutrient fertilisers require multiple registrations, state depots, and face frequent inspections.
- Growth Sector:
- Micronutrient fertilisers are one of the fastest-growing segments in Indian agriculture, with FY2025 consumption at 6.35 lakh tonnes and a 7.1% CAGR, mainly driven by cereals and grains.
- Recommendations:
- Pan-India valid licence
- Eliminate state-wise sale permissions
- Centralised digital product registry
- Rationalise local inspector powers
- Align compliance with IGST regime
Why It Matters
The fertiliser industry plays a key role in agricultural productivity. Rationalising outdated regulations and streamlining compliance can boost domestic production, lower prices, and reduce reliance on imports.
