Indian government urge to look into problems created by fertilizer subsidies

The SOMS (soluble fertilizers, organic and bio-fertilizers, micronutrients and biostimulants) sector has urged the Indian government to look into the problem that subsidies are creating for the entire industry. It has sought an end to dealers’ practice of forcing farmers (tagging) to buy other crop nutrients while buying subsidised fertilizers.

Leaders and experts of the sector, who met at a summit in Gandhinagar, Gujarat, on July 1 and 2, focused on strengthening domestic manufacturing capabilities, promoting innovation, reducing dependency on imports, and developing sustainable solutions for Indian agriculture.

Stakeholders said demand for subsidised fertilizers led to dealers insisting on farmers being forced to buy other crop nutrients which were not required and mooted direct payment as a solution to most of the issues faced by the sector.

Rajib Chakraborty, President, Soluble Fertilizers Industry Association (SFIA), said that India’s speciality fertilizer sector has huge potential to contribute towards subsidy reduction, sustainable agriculture, and nutrition Security.

He called for industry-guided research for a self-reliant India or Viksit Bharat.

Rahul Mirchandani, President, Indian Micro-Fertilizers Manufacturers Association (IMMA), said the SOMS sector’s market is nearly $1 billion. Water-soluble fertilizers make up ₹3,700 crore, bio-fertilizers ₹2,350 crore and micro-nutrients ₹2,142 crore.

The sector faces problems due to fertilizer subsidies, as dealers force farmers to buy other crop nutrients along with it. “In Rajasthan, farmers have complained that they are forced to buy 10 bottles of nano fertilizers if they want to buy 10 bags of di-ammonium phosphate (a subsidised fertilizer),” he said, adding that this forces them to bear an additional burden of ₹2,400.

Vinod Goyal, National Secretary, SFIA, said the Centre should consider an amendment to clause 31 of the Essential Commodities Act (ECA) by introducing “unlawful stock” and look at taking action against dealers and firms forcing farmers to buy other fertilizers under the Consumer Protection Act.

The conclave welcomed decisions of some States, such as Uttar Pradesh, to crack down on fertilizer “tagging” and lauded Agriculture and Farmers Welfare Minister Shivraj Singh Chouhan’s directive to States to end the unethical practice.

Maharashtra farmer-leader Sandeep Shamrao Vinde sought the appointment of an ombudsman, while another farmer-leader, Shankarao Narekar, said tagging forced farmers to buy poor-quality fertilizers.

The summit witnessed important issues being raised during panel discussions on “Linking Practices in Fertilizer Distribution: Opportunity, Challenge or Necessity”, “Fertilizer Start-ups and Innovation for Self-Reliance: Reality or Gimmick?” and “United for Growth: Past, Present & Future of Speciality Fertiliser Policy – Industry Perspective”.

A two-day SOMS B2B Expo 2026 was held during the summit, receiving an overwhelming response from the agriculture and fertilizer industry, according to a statement from SFIA. Over 70 exhibitors showcased advanced solutions, innovative products, and new technologies in the specialty fertilizer sector at the expo. More than 2,000 visitors, including industry professionals, farmers, researchers, entrepreneurs, and stakeholders, visited the exhibition.