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One-Nation-One-Licence for Micro-Fertiliser Manufacturers Amid Over-Regulation

1 min read
NABARD ARDNABARD Grade AState AAO
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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a complete overhaul of India’s fertiliser regulatory regime, citing high compliance costs, excessive inspections, and outdated provisions under the Fertiliser Control Order (FCO).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  • Outdated Framework: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

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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 Rationalising outdated regulations and streamlining compliance can boost domestic production, lower prices, and reduce reliance on imports.

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