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EconomyIndian Express13 June 2026

Why government is looking to issue faster approvals for new fertilisers

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๐Ÿ“Œ Summary:

  • The Centre''s 2026-27 fertiliser subsidy bill is set to touch ~Rs 3,40,000 crore โ€” far above the budgeted Rs 1,70,799 crore and the previous record of Rs 2,51,339 crore (2022-23); amid this, it wants to liberalise approvals for non-subsidised crop nutrients
  • Current rule: no new fertiliser can be sold without registration under the Fertiliser (Control) Order (FCO), 1985 โ€” requiring a dossier (composition, production, safety) plus bio-efficacy field trials over at least two cropping seasons via ICAR institutes/state agricultural universities, then Central Fertiliser Committee approval
  • The problem: registration takes 800+ days in India vs 90 (US), 30 (EU/Japan), 20 (Australia), 15 (Vietnam) โ€” slowing the launch of new products
  • Proposed reform: exempt fertilisers "meeting established quality and safety standards" from mandatory field trials; in-principle agreement reached, to be finalised after ICAR/industry/state consultations
  • Industry view (Yara): approve automatically if a product meets a minimum total-plant-nutrient content and a maximum heavy-metal/contaminant limit, with label claims open to post-market surveillance
  • Focus is on water-soluble/specialty fertilisers (e.g., NPK blends with secondary and micro-nutrients) โ€” more efficient than urea (46% N) or DAP โ€” supporting balanced nutrition and reducing reliance on heavily subsidised urea

๐ŸŽฏ UPSC Relevance: GS3 Economy/Agriculture โ€” fertiliser subsidy burden, ease of doing business, balanced nutrient use, and farm input regulation.

๐Ÿ“ Prelims Facts:

  • New fertilisers are registered under the Fertiliser (Control) Order (FCO), 1985
  • Bio-efficacy trials are run via ICAR institutes and state agricultural universities; approval by the Central Fertiliser Committee
  • Urea contains 46% nitrogen; DAP contains 46% P and 18% N
  • 2026-27 subsidy bill projected ~Rs 3.4 lakh crore (prior record Rs 2.51 lakh crore in 2022-23)

๐Ÿ”‘ Key Term: Water-Soluble/Specialty Fertilisers โ€” fully soluble nutrient blends (varying NPK plus secondary/micro-nutrients) enabling precise, stage-wise crop nutrition.

fertiliser subsidyFCO 1985ICARagriculture

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