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EconomyIndian Express13 June 2026
Why government is looking to issue faster approvals for new fertilisers
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500+ questions on Economy with explanations
๐ 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
๐ฏ UPSC Relevance: GS3 Economy/Agriculture โ fertiliser subsidy burden, ease of doing business, balanced nutrient use, and farm input regulation.
๐ 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)
๐ 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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