The post-liberalisation era of Indian agriculture has witnessed several pivotal shifts, but few have been as transformative as the introduction of water-soluble fertilisers (WSF). While drip irrigation revolutionised water efficiency, the true game-changer was the shift towards precision nutrition, pioneered by a handful of agri entrepreneurs in Maharashtra. In 1993, these early visionaries introduced WSF, an input 10 to 15 times more expensive than traditional urea, to grape farmers, promising higher yields, better quality, and export viability. However, stringent regulatory restrictions meant that until 2001, the adoption of this technology remained confined to research and special import permissions.
A significant breakthrough came in 2002 when WSF 19-19-19 was officially listed under the Fertiliser Control Order (FCO) 1985, allowing companies to import and sell. This seemingly small policy shift triggered a quiet yet radical transformation. Agri entrepreneurs, supported by visionary strategists from non agri sectors, took on the challenge of educating farmers about precision farming. They travelled across villages, engaging directly with farmers, demonstrating the benefits of shifting away from conventional fertilisers, and ensuring them better profitability. As a result, the landscape of Indian horticulture began to change. The adoption of SOMS, comprising water-soluble fertilisers, micronutrients, organic-biological stimulants, enabled the production of export-quality fruits and vegetables at an unprecedented scale.
By 2021-22, this transformation was evident in numbers. A staggering 2.87 lakh tonnes of agricultural produce was exported from Nhava Sheva Port alone, while India’s total horticulture output stood at 341 million tonnes. The growing reliance on SOMS instead of traditional, subsidised fertilisers was instrumental in achieving this milestone. Over three decades, India’s horticulture sector has evolved into a thriving, non-subsidised ecosystem, largely driven by MSMEs. This shift has not only increased farmers’ incomes manifold, but has also significantly reduced their dependence on government subsidies.
A joint study conducted by the Soluble Fertilizer Industry Association (SFIA) and the Vidarbha Industries Association (VIA) revealed that SOMS-based practices have reduced the use of subsidised urea, DAP, MOP, and other traditional fertilisers by 30–100% across various crops. Despite numerous government strategies, including reducing urea pack sizes, substituting high-nutrient fertilisers with lower-quality alternatives, and running awareness campaigns, there has been little success in cutting down the subsidy burden. In contrast, SOMS-based inputs have not only minimised conventional fertiliser use, but, in some cases, have completely replaced them. This transition is now widespread in Maharashtra, Gujarat, Karnataka, and parts of Andhra Pradesh. It is expanding into Madhya Pradesh, Haryana, Punjab, Himachal Pradesh, Kerala, and Tamil Nadu, covering diverse crops such as grapes, pomegranates, onions, tomatoes, chillies, capsicum, wheat, maize, and floriculture.
SOMS has emerged as an environmentally sustainable, carbon-negative, zero-residue, soil-conserving, and highly profitable alternative for both farmers and manufacturers. India’s grape cultivation, covering 175,000 hectares and producing 3.89 million tonnes annually as of 2024-25, now operates entirely on non-subsidised WSF and SOMS inputs. Recognising this transformation, SFIA and ICAR-NRC Grapes have initiated a joint study to document the revolutionary impact of agri entrepreneurs who have empowered farmers to embrace this change. However, despite being the backbone of Indian horticulture, the SOMS industry remains trapped in an outdated regulatory framework that restricts its full potential.
The Fertiliser Control Order (FCO) 1985, designed originally to regulate the supply of subsidised urea, DAP, and MOP under the Essential Commodities Act, has become a bottleneck for SOMS. Each state interprets FCO differently, leading to multi-layered licensing requirements that hinder the free movement of SOMS across the country. The outdated regulatory framework also criminalises minor variations in product specifications, exposing manufacturers and suppliers to FIRs and court cases. Further, while foreign exporters face no liability for inconsistencies, Indian manufacturers and importers are subjected to strict compliance measures, impeding the growth of domestic production. The arbitrary intervention of customs authorities in clearing imported consignments further disrupts supply chains. The absence of a national-level policy framework that supports indigenous SOMS production has restricted the sector’s scalability.
Despite its critical role in transforming Indian agriculture, SOMS remains unrecognised in key financial schemes. Neither NABARD nor agricultural development funds include this sector in their financing priorities. Banks do not classify SOMS as a priority lending sector, leaving MSMEs struggling to access the necessary capital for expansion. This lack of financial support is even more concerning given that India’s SOMS consumption, which stands at 3.5 lakh tonnes, is 95% import-dependent, with China being the dominant supplier. Such reliance on foreign sources for a crucial agricultural input exposes Indian horticulture to supply chain vulnerabilities.
SOMS has already proven itself as a “Solution to Subsidy,” a tested, accepted, and scalable alternative to conventional fertilisers. However, to unlock its full potential, India needs a progressive policy framework. The sector requires clear regulatory differentiation from subsidised fertilisers, ensuring that SOMS-based products are not entangled in outdated laws. Decriminalisation of minor infractions, a simplified ‘One Nation, One License’ system, and integration of SOMS into NABARD and priority lending schemes are essential steps toward promoting domestic production. A structured “Make in India” initiative for SOMS will help reduce import dependency, ensuring India’s horticulture sector remains resilient and competitive.
The success of SOMS-driven precision farming highlights what strategic entrepreneurship, farmer-centric innovation, and policy support can achieve. The future of Indian agriculture is already taking shape, it is now time for policies to align with this reality.