The restrictions could potentially limit the range of products available to farmers through existing distribution networks. For the companies that sell specialty fertilisers, micronutrients and other crop nutrition products alongside conventional fertilisers, this could cause an up to ₹120 crore loss in margins, according to industry estimates. The move comes at a time when fertiliser industry executives say they are seeking to promote the use of more efficient nutrients and encourage farmers to adopt advanced crop nutrition products to improve yields and soil health.
Unlike conventional fertilisers, whose retail prices are either controlled or supported by government subsidies, non-subsidised products are generally sold at market-determined prices. In a joint letter dated October 9, some top industry players urged the Bihar government to review its order, warning that the move could restrict farmers’ access to essential nutrients and affect soil health and crop productivity. Bihar’s low soil organic carbon levels make balanced nutrient application particularly important, said the letter, which ET has seen. “Restricting these products could discourage investment in new crop nutrition technologies and reduce farmers’ access to alternatives that may help improve fertiliser-use efficiency,” said a top executive at a large fertiliser manufacturer that sells subsidised and non-subsidised products.
This could also disrupt manufacturing operations of fertiliser companies producing organic and sulphur-based products, as well as supplies routed through dealers under the government’s one-stop fertiliser outlet model, the official said. The restrictions are aimed at preventing tagging, a practice in which dealers or suppliers make the purchase of non-subsidised products a condition for obtaining subsidised fertilisers. In UP, the restrictions took effect on January 1, 2026, covering non-subsidised products sold by major fertiliser suppliers.