Pesticide Industry Calls for Stricter E-commerce Regulations to Combat Fake Products

The pesticide industry has called upon the government to implement stricter regulations for e-commerce platforms selling crop protection products, citing inadequate compliance checks and growing concerns over fake products reaching farmers. Industry body CropLife India emphasized the need for mandatory authorisation certificates and clearer regulatory frameworks to address existing gaps in online pesticide sales.

Current Market Landscape and Regulatory Concerns

Online sales currently represent a minimal portion of India's pesticide market, but the sector is experiencing notable growth. CropLife India Chairman Ankur Aggarwal revealed that while e-commerce accounts for less than 1% of the ₹26,000 crore pesticide market, visibility on digital platforms has increased significantly since the government permitted online sales in 2021.

P K Singh, Agriculture Commissioner at the Ministry of Agriculture, acknowledged that basic compliance checks by e-commerce platforms, such as GST document verification of sellers, may prove insufficient when dealing with hazardous agricultural inputs. The official emphasized the critical need for enhanced quality assurance and traceability mechanisms in online pesticide sales.

Regulatory Gaps and Industry Demands

The industry has identified significant regulatory gaps in the current framework governing online pesticide sales. Under existing regulations, a Principal Authorisation Certificate is mandatory for individuals or firms seeking licenses to sell, stock, exhibit, or distribute pesticides. This certificate, issued by pesticide manufacturers, authorizes retailers or distributors to handle specific insecticides.

However, current rules do not explicitly specify requirements for e-commerce platforms regarding these certificates, creating what the industry describes as a regulatory loophole. This gap allows platforms to facilitate pesticide listings and sales without clear accountability measures.

Key regulatory concerns include:

• E-commerce platforms not required to obtain specific licenses under pesticide law
• No mandatory verification of products listed against seller's license endorsements
• Absence of Principal Certificate validation requirements
• Unlicensed warehouse storage and handling in inventory-based models

Legislative Framework and Future Outlook

CropLife India has urged the government to issue comprehensive rules under the existing Insecticides Act, 1968, while incorporating explicit provisions in the draft Pesticides Management Bill to regulate online sales effectively. The association noted that while the draft Pesticides Management Bill, 2025, emphasizes digital governance, online registration, and traceability to combat counterfeit pesticides, it lacks explicit regulation of online sales platforms.

Aggarwal stressed the importance of end-to-end traceability, stating that companies have issued legal notices to e-commerce platforms over unauthorized sales, with some filing lawsuits. Courts have directed platforms to remove unauthorized listings in certain cases, demonstrating the ongoing legal challenges in this space.

Industry Response and Safety Measures

Subhash Chand, Secretary of the Central Insecticides Board and Registration Committee, acknowledged that while digitization and e-commerce are expanding rapidly in rural India, they introduce new risks requiring shared responsibility between platforms and manufacturers for quality, compliance, and farmer safety.

The industry's immediate priority focuses on ensuring full implementation of the current Insecticides Act across all e-commerce platforms until new legislation is enacted. This approach aims to establish comprehensive regulatory oversight while maintaining the benefits of digital agricultural commerce for farmers across India.