The soluble fertilizers, organic and bio-fertilizers, micronutrients and biostimulants (SOMS) sector has urged the Indian government to look into the problems created by fertilizer subsidies, according to a report by The Hindu BusinessLine. Stakeholders are demanding an end to the practice of dealers forcing farmers—known as “tagging”—to buy other crop nutrients while purchasing subsidized fertilizers.
The Tagging Problem and Its Impact
At a summit held in Gandhinagar, Gujarat, on July 1 and 2, leaders and experts of the sector focused on strengthening domestic manufacturing capabilities, promoting innovation, reducing dependency on imports, and developing sustainable solutions for Indian agriculture. According to the report, demand for subsidized fertilizers led dealers to insist that farmers buy other crop nutrients that were not required. Stakeholders mooted direct payment as a solution to most of the issues.
Rahul Mirchandani, President of the Indian Micro-Fertilizers Manufacturers Association (IMMA), provided a stark example: “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) ... this forces them to bear an additional burden of ₹2,400.”
Industry Stakeholders' Proposals
Vinod Goyal, National Secretary of the Soluble Fertilizers Industry Association (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.
Rajib Chakraborty, President of SFIA, noted that India’s specialty 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 (Viksit Bharat).
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.
Market Size and Sector Overview
The SOMS sector’s market is nearly $1 billion, according to Rahul Mirchandani. The breakdown of key segments is as follows:
| Segment | Market Value (₹ crore) |
|---|---|
| Water-soluble fertilizers | ₹3,700 |
| Bio-fertilizers | ₹2,350 |
| Micro-nutrients | ₹2,142 |
Government and State Response
The conclave welcomed decisions of some states, such as Uttar Pradesh, to crack down on fertilizer “tagging.” It also lauded Agriculture and Farmers Welfare Minister Shivraj Singh Chouhan’s directive to states to end the unethical practice. However, industry leaders stressed that more comprehensive action is needed at the central level.
The SOMS Summit and Expo
The summit featured panel discussions on key topics including “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. More than 2,000 visitors, including industry professionals, farmers, researchers, entrepreneurs, and stakeholders, visited the exhibition.
The developments underscore the growing tension between subsidy-driven fertilizer distribution and the need for a fair, efficient market for specialty inputs. For commodity traders and agribusiness executives, the outcome of these policy discussions could reshape the competitive landscape for fertilizers in India, potentially altering demand patterns for both subsidized and non-subsidized crop nutrients.
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