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Latest Agricultural News, Crop Prices, Farming, Agri Business News | The HinduBusinessLine

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Agri-input industry flags ‘Inspector Raj’ return
2026-04-08 · via Latest Agricultural News, Crop Prices, Farming, Agri Business News | The HinduBusinessLine
Multiple manufacturing associations felt that Maharashtra risks being left with a landscape dominated by spurious players rather than compliant manufacturers

Multiple manufacturing associations felt that Maharashtra risks being left with a landscape dominated by spurious players rather than compliant manufacturers | Photo Credit: MOORTHY RV

Leading industry bodies representing India’s agri-input and fertiliser sector have urged Maharashtra Chief Minister Devendra Fadnavis to retain the state’s inspector-free regulatory regime, warning that any move to reintroduce an inspection-heavy system could hurt investor sentiment and ease of doing business.

Indian Micro Fertilizers Manufacturers Association (IMMA) along with other players including Soluble Fertilizer Industry Association (SFIA), Pesticides Manufacturers & Formulators Association of India (PMFAI), Organic Agro Manufacturers Association (OAMA), Maharashtra Biocontrol Manufacturers Association (MBMA) and IAIM – Indian Agro Inputs Manufacturers Association have jointly expressed concern over reports suggesting the possible return of an inspection-heavy regulatory regime.

The industry pointed out that Maharashtra became the first state to roll out an inspector-free regime through a Government Resolution issued in June 2025. The reform, they said, was widely welcomed for promoting a trust-based compliance model, improving transparency, and supporting MSMEs in the agri-input sector.

According to the associations, the existing framework has encouraged responsible manufacturing practices, boosted investment in crop nutrition solutions, and contributed to agricultural productivity and farmer incomes.

Concerns Raised

However, the bodies flagged recent deliberations reportedly held in October 2025 and January 2026 on reintroducing an inspector-driven system. They noted that such discussions took place without adequate consultation with key industry stakeholders.

Industry representatives cautioned that reinstating an inspection-heavy regime could increase regulatory discretion, compliance burdens, and operational uncertainty for manufacturers and importers. Some also attributed the push to a “residual inspector lobby” seeking to regain oversight powers.

The rollback of progressive reforms could undermine Maharashtra’s positioning as a leader in business-friendly agricultural governance, the associations said.

They have urged the state government to withdraw any proposal that may lead to the return of what they termed “Inspector Raj”, and instead continue with policies that prioritise ease of doing business, accountability, and sectoral growth.

Sustainable Practices

The industry also reiterated its willingness to work with the state government to strengthen the agri-input ecosystem, with a focus on farmer welfare, sustainable practices, and long-term productivity gains.

Vijay Thakur of the OAM Association Maharashtra stated that the June 19, 2025 Government Resolution was a bold and overdue dismantling of Inspector Raj, restoring trust and enabling genuine industry growth. Any attempt to revert to an inspection-heavy regime would be a serious setback, reopening the door to corruption, extortion, and regulatory misuse, he said.

Suhash Buddhe, representing IPNM SPC, the consortium of 10 agri input manufacturers and  dealers associations, expressed serious concern over the intent behind reintroducing an inspector-driven regime, warning that the industry is already at a breaking point due to excessive inspections, raw material shortages, and sharp cost escalations.

He emphasized that increasing regulatory pressure will only accelerate the exodus of genuine manufacturers to more industry-friendly states like Gujarat, and if this trend gathers pace, Maharashtra risks being left with a landscape dominated by spurious players rather than serious, compliant manufacturers, ultimately undermining both industry credibility and farmer trust.

Published on April 8, 2026