The biostimulant industry has raised concerns over a regulatory deadlock that has stalled India’s biostimulant industry, risking ₹4,000 crore in losses. With approvals delayed and sales halted, the association urges the government to provide interim relief and fast-track a long-term regulatory framework.
The Biological Agri Solutions Industry Association (BASAI), representing India’s leading biostimulant manufacturers, is sounding the alarm over a deepening regulatory paralysis that threatens to upend the country’s biostimulant industry.
“Despite full regulatory compliance, product efficacy validation from 261 university-led field trials, and investments in safety, quality, and innovation, no clear pathway exists for companies to legally continue selling biostimulant products after the expiry of their G3 certifications. This sudden vacuum has triggered a full-blown operational crisis across the industry,” BASAI stated in a recent press release.
BASAI’s Secretary highlighted that “Biostimulants such as humic acids, amino acids, protein hydrolysates, and seaweed extracts have been used in Indian agriculture for over 25–30 years, supporting farmer resilience against drought, heat, and other abiotic stress. These products have been well validated by farmers themselves, who have made them an essential part of their strategy to protect yields and adapt to climate change.”
India’s biostimulant market, spanning over 100 crops, involves more than 250 manufacturers, 10,000+ formulators, and 100+ importers, catering to a market of 1 lakh MT & 10,000 KL. In 2021, the Government of India introduced biostimulant guidelines under the Fertiliser Control Order (FCO) to bring structure and safety to this growing sector. The guidelines established a three-stage approval process: G (permanent data submission intended to validate products based on efficacy, toxicity, and quality data), G2 (State-specific provisional review), and G3 (temporary Pan-India sales permission). Since then, over 38,000 applications have been submitted for G3 approval.
According to BASAI, 1,000 applications, backed by comprehensive data from top agricultural universities, were submitted in late 2023 for permanent registrations. As of July 2025, only 45 products have received approval under Schedule VI of the FCO. However, there is no clear path on how states will implement these notifications, and no government infrastructure exists to conduct the required testing. Consequently, product availability has been stalled, pending state-level licensing.
With G3 certifications lapsed and G review applications stalled, the entire industry has been brought to a screeching halt. Industry estimates indicate that losses for this Kharif season alone are projected at ₹3,500–₹4,000 crore, significantly impacting both the industry and millions of farmers.
Unlike other agri-input segments, the biostimulant sector is dominated by a large percentage of SMEs, MSMEs, and startups. It remains a very fragmented market where small manufacturers hold the largest market share. Many Indian biostimulant manufacturers are now effectively locked out of the market. A quick survey of some of the most prominent BASAI members revealed that these members had made applications for over 45 products across the humic, seaweed, amino, and combination segments.
BASAI emphasizes that this is not merely an industry crisis but a national opportunity at risk. Most biostimulant products are 100% indigenously developed or manufactured, or designed for Indian crops and conditions, built on import substitution and science-based innovation.
To resolve the crisis, BASAI has urged the government to adopt a three-tier response strategy. First, it seeks immediate interim approval for all products with expired G3 and complete G submissions. Second, it recommends a fast-track pathway for products backed by validated data, particularly those evaluated by ICAR and state agricultural universities. Finally, BASAI has called for a long-term regulatory framework under the FCO for defined biostimulant categories.