India needs single licence for agri micronutrient products across states, says IMMA report

Mumbai, Feb 5 (PTI) India should introduce a centralised licence valid across all states for the manufacturing, imports and sales of micronutrient products for the agriculture sector, a report by the Indian Micro Fertilizers Manufacturers Association (IMMA) and Yes Bank said on Thursday.

"This will eliminate the need for multi-state-wise registrations for the same product, formulation or manufacturing unit and improve ease of doing business and facilitate development of innovative products," the report said.

The report, titled 'Micronutrients - the Make in India Opportunity', was launched at the 6th Crop Nutrition Summit in Mumbai.

It stressed the need to create a single-window digital portal for product registration, licensing, renewals, and amendments, enabling online submission of dossiers, test reports, and compliance documents with time-bound approvals.

The study recommended differentiating licensing requirements for commodity micronutrient salts, standard formulations, and innovative or advanced formulations to accelerate product development and support export-oriented manufacturing.

It also called for moving towards outcome and performance-based regulations, which would fast-track approvals for incremental innovations, ensure clear product classification, truthful labelling and robust post-market surveillance.

The report recommended launching an integrated portal for micronutrients similar to SATHI (Seed Traceability, Authentication and Holistic Inventory), a national digital platform that tracks seeds from breeder to farmer using QR and bar code tagging.

It suggested aligning customs classification with fertiliser recognition under the Fertilizer Control Order to rationalise duties, reduce input costs and incentivise domestic manufacturing.

The study recommended adjusting custom duty on micronutrient fertilizers to match that of bulk fertilizers to lower costs and motivate farmers to adopt balanced fertilizer practices.

It also suggested the government review policies to make micronutrient fertilizers more affordable, address price disparities in zincated urea and provide adequate support for fortified fertilizers. Alternatively, zinc content in zincated urea could be reduced from 2 per cent to 0.5 per cent, it said.

The report called for extending 5 per cent goods and services tax (GST) across all fertilizers notified under the Fertilizer Control Order, expediting refunds of excess GST credits and implementing a unified licensing system.

India's crop micronutrients market was valued at Rs 5,000 crore in fiscal 2023-24, and is projected to reach nearly Rs 13,000 crore by fiscal 2030, the study said.

Zinc-based products dominate consumption, followed by iron, boron, and multi-micronutrient mixtures, while chelated formulations are the fastest growing segment, it added.

"The recommendations presented in the report are pragmatic, forward-looking and aligned with national priorities," said IMMA President Rahul Mirchandani.

IMMA members represent 80 per cent of India's micronutrient industry. PTI LUX HVA