New Delhi, July 13 -- The practice of bundling specialty and soluble fertilisers with subsidised conventional products such as urea is affecting innovation and threatening the survival of micro, small and medium enterprises (MSMEs) in the sector, said Rajib Chakraborty, President, Speciality Fertiliser Association of India (SFAI).

In an interview with PTI on Monday, Chakraborty said the practice-known in the industry as "tagging"-forces dealers to sell specialty fertilisers only when farmers purchase subsidised urea. He noted that this occurs across multiple levels, including companies, distributors and retailers, creating distortions in the market.

Impact on Innovation and Market Access

Chakraborty emphasised that the system has limit...