The biostimulant segment of the fertiliser industry is grappling with fresh regulatory pressures following the February 2025 amendment to the Fertiliser Control Order (FCO). Until recently, biostimulants operated in an unregulated space. Now, they fall under stringent controls, driving up compliance costs and threatening the survival of many small-scale manufacturers.
Rajib Chakraborty, President of the Soluble Fertiliser Industry Association (SFIA), admitted the new regulations caught the industry off guard. “The industry is not fully ready to adopt them. The process will wipe out many small SMEs,” he warned, pointing to gaps in digitization, manpower, and resources.
ICAR Approval Now Mandatory
Under the new rules, all biostimulant formulations must undergo testing at approved institutions and receive clearance from the Indian Council of Agricultural Research (ICAR). This change has created a massive regulatory bottleneck, with thousands of products currently in the market still awaiting approval.
No Ban, But Stricter Path Ahead
Chakraborty clarified that reports of an outright ban on biostimulant sales were misleading. Instead, the government plans to integrate biostimulant specifications into the FCO, allowing phased approvals and continued sales during the transition.
Growth Continues Despite Challenges
Despite the regulatory upheaval, the specialty fertiliser category—which includes soluble, organic, micronutrient, and stimulant products (SOMS)—remains on a strong growth trajectory, registering an 18% year-on-year CAGR. Biostimulants are widely used in cotton, soybeans, and wheat, with SFIA members engaging directly with over 1,000 farmers annually.
Balancing Compliance and Growth
As reported by knnindia.co.in, while tighter oversight aims to streamline inputs and ensure farmer confidence, the pace and cost of enforcement could squeeze smaller players out of the market. The sector now faces a dual challenge: align with regulatory standards while sustaining robust growth.
