The Biological Agri Solutions Industry Association (BASAI), representing India’s leading biostimulant manufacturers, startups, SMEs, and innovators, is sounding the alarm over a deepening regulatory paralysis that threatens to upend the country’s biostimulant industry — just as India enters the critical Kharif cropping season.
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, disproportionately impacting startups, MSMEs, and rural agri-entrepreneurs.
“We have followed every rule. But now we are being punished for our compliance,” said a Start-Up Founder and BASAI Member.
What Are Biostimulants and Why Do They Matter?
Biostimulants are frontline tools in climate-resilient agriculture — helping plants withstand drought, salinity, extreme temperatures, and other climate-induced stresses. Unlike traditional inputs, they improve nutrient use efficiency, soil carbon, and root development, enabling farmers to produce more with less.
These products can be tailored to specific crops, geographies, and soil types, making them highly adaptive to India’s vast agro-climatic diversity. They align directly with India's vision of Natural Farming, Atmanirbhar Krishi, and the Carbon Neutrality roadmap.
Speaking on the matter, BASAI CEO said 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.”
Sector Snapshot & Fallout:
Over 250 manufacturers, 10,000+ formulators, and 100+ importers cater to India’s 1 lakh MT & 10,000 KL biostimulant market, spanning 100+ crops across Kharif, Rabi, and summer seasons.
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In 2021, the Government of India introduced the biostimulant guidelines under the Fertiliser Control Order (FCO) to bring structure and safety to this growing sector. The guidelines introduced a 3-stage approval process—G (permanent data submission)- with the intention to validate products based on efficacy, toxicity, and quality data, G2 (State-specific provisional review), and G3 (temporary Pan India sales permission). Since then, 38,000+ applications were submitted for G3 approval.
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~1,000 applications backed by comprehensive data from top agricultural universities were submitted in late 2023 for permanent registrations.
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As of July 2025, only 45 products have received approval under Schedule VI of the FCO.
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But no clear path on how states will implement these notifications. No infrastructure at the government level to conduct the said testing. Product availability is stalled, pending state-level licensing.
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With G3 lapsed and G review applications stalled, the entire industry has been brought to a screeching halt.
Losses for this Kharif season alone are estimated at Rs 3,500–Rs 4,000 crore, affecting both the industry and millions of farmers.
“It is ironic,” say the BASAI member startup founders “that Indian manufacturers and innovators—many of us startups supported by BIRAC, NITI Aayog, ICAR, and State Agriculture Universities—have developed world-class biostimulants and are actively exporting them. Yet today, Indian farmers are being denied access to technologies specifically created for them, with public funds, on Indian soil.”
Global Biostimulant Market and Brazil a case study
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%. Brazil has emerged as a global leader in biostimulant adoption:
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>550 products approved under a transparent, science-based system.
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Regulatory approval within 60–180 days, versus India’s multi-year uncertainty.
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Brazilian biostimulant market size: USD 450–500 million.
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India, with a larger agricultural base, risks falling behind without similar regulatory agility.
“Brazil shows what’s possible: when policy nurtures innovation, the ecosystem shifts rapidly toward sustainable solutions — benefiting both farmers and industry. India too can benefit from the same shift”, said the the senior members of BASAI who operate in several countries like India, Brazil, US, Europe
Made-in-India Innovation at Risk
Unlike any other agri input segment the Biostimulants is dominated by a large percent of SME's, MSME's and startups. Biostimulants is still a very fragmented market where small manufacturers take up the largest market share. Many Indian biostimulant manufacturers — developed under the aegis of NITI Aayog, BIRAC, ICAR, and DPIIT — are now locked out of the market. A quick survey of some of the most prominent BASAI members revealed that the members had
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Made applications for 45+ products in the humic, seaweed, amino and combination segments
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Validated products with more 275+ university trials
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Had more than 12 international patents
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Publishing several peer-reviewed studies
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Submitting GLP/NABL safety dossier
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Generated 1500+ farmer case studies across India
This is not just an industry crisis — it’s a national opportunity at risk. Most products are 100% indigenously developed or manyfactured, or designed for Indian crops and conditions, and built on import substitution and science-based innovation.
BASAI’s Proposed Path Forward
BASAI urges the government to adopt a three-tier solution:
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Immediate relief through interim approval for all products with expired G3 and complete G submissions.
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Fast-track pathway for products with validated dossiers, particularly those evaluated at ICAR and state agricultural universities.
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Long-term regulatory framework, including:
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A Section 20A approval pathway under FCO for defined biostimulant categories.
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Issuance of general specifications for key molecules (e.g., humic acid, amino acid blends, seaweed extract).
High-Impact Sector with Proven Investor Interest
Over INR 1,200 crore in VC/PE investments have flowed into India’s biological agri-solutions sector in the past 5 years.
FDI interest is growing — but the current uncertainty undermines investor confidence in the regulatory maturity of the Indian ag-biological sector.
Final Word from BASAI
“We stand at a crossroads. India can either lead the biostimulant revolution — or lose out to countries that are moving faster, with clearer rules. This is a chance to support Indian startups, reduce import dependence, empower farmers, and position India as a global bio-input hub. We call upon the Government to act swiftly, boldly, and decisively — for the future of Indian agriculture.”
