Government Facing Pressure from BASAI to Solve Regulatory Impasse in Biostimulant Industry: Struggling Startups and SMEs on Brink due to Kharif Season
India's burgeoning biostimulant industry, a key player in climate-resilient agriculture, is currently grappling with a regulatory crisis. The industry, represented by the Biological Agri Solutions Industry Association (BASAI), is calling for swift government action to address the challenges and ensure the sector's survival and growth.
The crisis stems from the 2021 amendment to the Fertilizer Control Order (FCO) that classified biostimulants as a distinct category, requiring registration, toxicity, and efficacy testing. Although the intention was to bring transparency and safety, the regulatory process has led to a backlog, delays, and confusion, restricting market availability of biostimulants.
Prior to the 2021 amendment, biostimulants were not formally regulated in India, leading to market expansion but also allowing unverified and potentially ineffective products to circulate. The new regulations aim to ensure product safety and efficacy and eliminate deceptive formulations. However, the implementation issues persist, causing significant disruption to the sector and impacting the agriculture industry.
The delay in provisional registrations has been a major concern for both manufacturers and farmers. The Ministry of Agriculture has issued clarifications to streamline the process, but the implementation issues persist. As a result, only 45 products have received approval under Schedule VI of the FCO as of July 2025.
The regulatory gridlock is threatening the sector’s existence just as India enters critical agricultural periods like the Kharif season. There have been farmer complaints about the efficacy of some biostimulants and allegations that retailers are forcing biostimulant purchases alongside subsidized fertilizers, raising questions about their actual benefits.
The industry, dominated by SMEs, MSMEs, and startups, has made applications for over 45 products in various segments, validated products with over 275 university trials, have more than 12 international patents, published several peer-reviewed studies, submitted GLP/NABL safety dossiers, and generated 1500+ farmer case studies across India.
The Centre is planning to announce guidelines to regulate the Rs 1,500 crore biostimulants' market. BASAI urges the government to adopt a three-tier solution: immediate relief, fast-track pathway for validated products, and a long-term regulatory framework including a Section 20A approval pathway under FCO for defined biostimulant categories and the issuance of general specifications for key molecules.
The losses for this Kharif season alone are estimated at Rs 3,500-Rs 4,000 crore, affecting both the industry and millions of farmers. With a larger agricultural base, India risks falling behind without similar regulatory agility. Brazil, for instance, has emerged as a global leader in biostimulant adoption with regulatory approval within 60-180 days.
The global biostimulant market is currently valued at USD 4.5 billion, projected to reach USD 8.9 billion by 2030 with a CAGR of over 11%. FDI interest is growing in the biostimulants sector, but current uncertainty undermines investor confidence in the regulatory maturity of the sector.
Biostimulants improve nutrient use efficiency, soil carbon, and root development, enabling farmers to produce more with less. They can be tailored to specific crops, geographies, and soil types, making them highly adaptive to India's vast agro-climatic diversity. Biostimulants are frontline tools in climate-resilient agriculture, helping plants withstand drought, salinity, extreme temperatures, and other climate-induced stresses.
BASAI calls upon the Government to act swiftly, boldly, and decisively to support Indian startups, reduce import dependence, empower farmers, and position India as a global bio-input hub. The resolution of the current regulatory crisis is crucial to unlocking the sector's potential and ensuring sustainable agriculture growth in India.
[1] India's Biostimulant Market: Current Regulatory Crisis and Potential Solutions [2] India's Biostimulant Market: A Growing Opportunity Amidst Regulatory Challenges [3] India's Biostimulant Industry Faces Regulatory Gridlock [4] India's Biostimulant Market: Current Regulatory Landscape and Way Forward [5] India's Biostimulant Market: Challenges and Opportunities
- Despite the regulatory crisis, India's biostimulant market, a significant player in education-and-self-development through technology-driven climate-resilient agriculture, is urgently seeking government action to streamline regulations and ensure the industry's growth.
- Amidst the consternation over the regulatory hurdles, India's biostimulant sector, crucial for general-news sectors like agriculture and technology, is advocating for a three-tier solution to facilitate growth, reduce import dependence, and position the country as a global bio-input hub.
