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Business Standard
27-05-2025
- Business
- Business Standard
Outdated fertiliser rules favour imports over domestic production: Industry
The government's "outdated" fertiliser regulations are creating an uneven playing field, favouring Chinese imports over domestic manufacturers and undermining the "Make in India" initiative, industry bodies said on Tuesday. The fertiliser control framework's concurrent naturegoverned by both central and state authoritieshas led to numerous amendments but has struggled to keep pace with evolving domestic needs and global developments, gradually coming to be seen as a relic of the legacy "Inspector Raj" and "License Raj", they said. The industry bodies called for comprehensive reforms including implementing "One Nation, One Licence" policies, ensuring regulatory parity between domestic and foreign manufacturers, and capping inspector numbers to two per unit. The Soluble Fertilizer Industry Association (SFIA), in a statement, said a major public sector enterprise recently issued tenders for soluble fertilisers that explicitly excluded "Made in India" products, highlighting how current regulatory frameworks discourage local production while facilitating imports. Under India's Fertilizer Control Order (FCO), domestic startups must obtain multiple licences, maintain offices and establish warehouses in every state where their products will be distributed. In contrast, foreign suppliers face minimal compliance requirements, needing only basic import formalities to sell across all Indian states. The FCO, established under the Essential Commodities Act of 1955, was designed to ensure fertiliser quality and monitor distribution during a period when India relied heavily on imports. "However, the framework has struggled to adapt to modern domestic production capabilities," the statement added. Suhash Buddhe, mentor at IIM Nagpur Incubation Cell, said India's production of 112.62 million tonnes of fruits and vegetables relies heavily on 5 lakh tonnes of imported, non-subsidised fertilisers. "A single manufacturing unit is monitored by as minimum as 32 FCO inspectors, leading to excessive scrutiny and harassment under the guise of regulation. This overregulation deters startup growth and pushes India further into import dependence, instead of nurturing domestic innovation," Buddhe said. Jayantibhai Kumbhani, President of the Chamber For Agri Input Protection (CAIP), Ahmedabad, said no other industry, including pharmaceuticals, faces such intense level of inspector oversight. "In some cases, a single district can have many inspectors monitoring one fertiliser unit, creating undue pressure on Indian entrepreneurs," he said, emphasising the urgent need for FCO reforms to foster self-reliance in the non-subsidised fertiliser sector. This view is echoed by Vijay Thakur, President of grassroots agri-entrepreneur association OAMA, Maharashtra, who shares similar concerns and advocates for urgent policy intervention. The regulatory burden particularly affects soluble fertilizers, which are critical for horticulture growth. Unlike sectors such as electronics, pharmaceuticals and defence where the Central government's "Import Substitution" and "Make in India" initiatives have gained significant traction, the fertilizer sector has seen little progress. "Grassroots innovation in manufacturing these vital compounds continues to struggle due to a lack of market access, constrained by the outdated and rigid provisions of the Fertilizer Control Order," according to the statement. The high cost of setting up offices, warehouses, and securing licenses in each statecombined with the need for market partners to duplicate these effortserodes any competitive edge Indian manufacturers might have, it added. SFIA National Secretary Vinod Goyal said, "A practical path forward includes implementing 'One Nation, One Licence,' ensuring parity with foreign manufacturers by allowing marketers to add sourcing in one state and market across all operational states for Indian sources, capping inspector numbers to two per unit, and ultimately enacting a new law for non-subsidised fertilizers outside the Essential Commodities Act to realise the vision of Atmanirbhar Bharat.
Indian Express
23-04-2025
- Politics
- Indian Express
AAP govt directs ETOs to conduct four raids every month; SAD and BJP say ‘tax terrorism'
Opposition Shiromani Akali Dal (SAD) and BJP on Tuesday alleged that the AAP government had directed 240 Excise and Taxation Officers (ETOs) to conduct four raids each month, targeting penalties of Rs 8 lakh per case, and called it a 'goonda tax' and 'tax terrorism' to 'loot' small and medium traders. The former allies warned to hold separate 'state-wide agitation against the government if the directive hat not been rolled back'. The SAD, meanwhile, appealed to traders to gather in Ludhiana West during the ongoing by-election campaign. Addressing a press conference in Amritsar, senior SAD leader NK Sharma said, 'We will not let Punjab traders be subjected to tax terrorism and be treated as criminals. SAD president Sukhbir Singh Badal will lead the protest dharnas.' Sharma alleged, 'The AAP government had directed 240 ETOs to conduct four raids each month, targeting penalties of Rs 8 lakh per case. This means 1,200 raids and a total annual collection exceeding Rs 1,100 crore. How can anyone do business in Punjab in such a situation?' In Chandigarh, Punjab BJP General Secretary Anil Sareen alleged that the AAP government was using the taxation department as a 'tool for extortion', and warned, 'If the government does not roll back this directive and stops forcibly extorting traders, the BJP will launch a statewide agitation.' 'This will undoubtedly lead to arbitrary actions by officials and promote a culture of Inspector Raj and open corruption. The government has unofficially instructed officers to yield fines through the inspections. This isn't merely harassment of traders, but a direct robbery of their hard-earned money,' Sareen said. Demanding the revival of the 2014 Rahat scheme introduced by then deputy chief minister Sukhbir Singh Badal, Sharma said, 'The scheme ensured the dignity of traders and ended Inspector Raj.' Accusing Delhi AAP leadership of the current situation in Punjab, Sharma said, 'The AAP's loss in the Delhi Assembly elections was a black day for Punjab. Their central leadership is now milking Punjab dry.'
Time of India
22-04-2025
- Business
- Time of India
SAD, BJP slam AAP for ‘tax terrorism', threaten agitaion
Chandigarh: The Shiromani Akali Dal ( SAD ) and the BJP on Tuesday made scathing attacks on the ruling Aam Aadmi Party (AAP) in Punjab. They accused the AAP-led govt of unleashing " tax terrorism " and claimed that the Bhagwant Mann-led dispensation was planning to "loot" the state's traders by conducting raids on them. Both parties warned of launching a statewide agitation over the issue. In a post on X, SAD president Sukhbir Singh Badal said the AAP and CM Mann were "seeking to destroy the small and medium traders by forcing taxation officers across Punjab to conduct 1,000 raids every month to extort money to fund their excesses". "The @Akali_Dal_ appeals to traders to unite and oppose this official goondaism which will vitiate the business environment in the state. We will also launch a public movement against this drive and demand that the 'Rahat' scheme, launched by the Akali govt, is implemented to end Inspector Raj," said Sukhbir. He further said: "The 'Rahat' scheme allowed traders to pay between Rs 5,000 tax for a turnover of Rs 25 lakh and Rs 20,000 tax for a turnover of Rs 1 crore and restricted the entry of Tax officials in business premises." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like People Aged 50-85 With No Life Insurance Could Get This Reassured Get Quote Undo He added: "This is needed to safeguard the trading community which is already facing the brunt of criminal gangs and extortions." Terming the govt move "shocking", Punjab BJP general secretary Anil Sarin said: "The Punjab govt, under the Aam Aadmi Party, has devised a plan to loot the state's traders to cover the expenses of its leaders from Delhi. The AAP govt is now using the taxation department as a tool for extortion." Talking to mediapersons, Sarin alleged: "On April 18, the AAP govt issued a new directive to ensure that each Excise and Taxation Officer (ETO) conducts four inspections every month and resolves them within the same timeframe. This would result in around 1,200 inspections across the state each month. If an average penalty of Rs 8 lakh is imposed per inspection, the monthly collection would total Rs 96 crore and annually a staggering Rs 1,152 crore." He added: "This would undoubtedly lead to arbitrary actions by officials and promote a culture of Inspector Raj and open corruption." Sarin also alleged: "The govt has unofficially instructed officers that every inspection must yield fines of Rs 8 to Rs 10 lakh. This isn't merely harassment of traders, but direct robbery of their hard-earned money." He warned: "If the govt does not roll back this directive and stops forcibly extorting traders, the BJP will launch a statewide agitation in protest." Senior SAD leader N K Sharma also held a press conference on the issue and said SAD would go to each and every city and expose the "goonda tax" being collected by the AAP govt. He appealed to the traders to converge at Ludhiana West to confront the AAP during the ongoing campaigning for the byelection. Sharma said the party president, Sukhbir Singh Badal, would lead the 'dharnas'. Sharma added: "We will not let Punjabi traders be subjected to tax terrorism and be treated as criminals." Pointing out that 1,200 raids in one year would result in a total collection of more than Rs 1,100 crore annually, the SAD leader asked: "How can anyone do business in Punjab in such a situation?" He said traders were already facing lawlessness, criminal gangs, and extortions. "This is why they have already announced to invest Rs 2.35 lakh crore in Uttar Pradesh and are also investing in a troubled state like Jammu and Kashmir," Sharma added. MSID:: 120520454 413 |
Bloomberg
09-04-2025
- Business
- Bloomberg
Modi Must End India's ‘Inspector Raj' Mindset
It isn't just the Americans. From factories making Louis Vuitton fashion to those churning out kitchen appliances, everyone is waiting for the Indian quality inspector. Indonesia is getting impatient; the Europeans are fuming. The Chinese think it will be easier to get tickets to a Taylor Swift concert than to have them show up in Shenzhen. For Prime Minister Narendra Modi to make a quick deal with the US president, he should offer to dismantle the 'Inspector Raj' that has been weaponized by his administration, ostensibly to create jobs but really to protect powerful local interests.
