Question : Black-marketing of Fertilizers

(a) whether the Government is aware of the distress caused to the farmers due to large scale black-marketing and unprecedented rise in the prices of fertilizers;

(b) if so, the response of the Government in this regard;

(c) the details regarding the demand and supply and also the status of availability and distribution of various fertilizers against the demand of the farmers during the current crop season, State-wise including in Maharashtra; and

(d) the details of the remedial action taken by the Government to curb the price rise and end black-marketing of fertilizers in the country?

Answer given by the minister

MINISTER OF CHEMICALS AND FERTILIZERS

(SHRI D.V. SADANANDA GOWDA)

(a) & (b): Sir, few sporadic cases of black-marketing of fertilizers have come to the notice of Government but no evidence of large scale black-marketing has been found as reported by State Governments/UTs.

Government has declared fertilizer as an essential commodity under the Essential Commodities Act, 1955(ECA) and notified Fertilizer (Control) Order (FCO), 1985 & Fertilizer (Movement Control) Order, 1973 under the EC Act. State Governments have been adequately empowered to ensure selling of fertilizers at MRP besides stopping smuggling and diversion of fertilizers. State Governments are empowered to conduct search, make seizures and take punitive action against any person violating provisions of FCO, 1985 and Essential Commodities Act, 1955.

The State Governments have been empowered to take appropriate action to curb diversion of fertilizers and initiate action against the persons who violate these orders. Department of Fertilizers has, from time to time, written to the Chief Secretaries of various States and Ministry of Home Affairs to activate the enforcement agencies under their jurisdiction to take appropriate action to curb diversion.

Department of Fertilizers ensures availability of all fertilizers at State level as per requirement projected by DAC&FW in consultation with States/ UTs for each season and distribution within the States is the responsibility of the concerned State Governments. The availability is monitored regularly at various levels and there is no shortage of any fertilizer.

Further, following steps are being taken to check black-marketing/ smuggling/ diversion of fertilizers meant for farmers:

a. The movement of all major subsidized fertilizers is being monitored throughout the country by an on-line web based monitoring system (www.urvarak.co.in) also called as Integrated Fertilizer Monitoring System (iFMS);

b. The State Governments have been advised to sensitize the State Institutional Agencies to coordinate with manufacturers and importers of fertilizers for streamlining the supplies;

c. Department of Fertilizers and Department of Agriculture & Cooperation and Farmers Welfare (DAC&FW) are jointly reviewing fertilizer availability with State Agriculture department through Video Conferences every week. The corrective actions, if required, are taken immediately to avoid any hardships to farmers;

d. Fertilizer companies are required to print Maximum Retail Price (MRP) on the fertilizer bags clearly. Any sale above the printed MRP is punishable under the Essential Commodities Act, 1955;

e. State Governments as enforcement agencies are adequately empowered to check the irregularities.

(c): The projected requirement, availability and sales position of various fertilizers in Rabi’ 2019-20 (from 01.10.2019 to 10.03.2020) including Maharashtra is placed as Annexure- A.

(d): Urea is being provided to farmers at a statutory notified Maximum Retail Price (MRP). The MRP of 45 kg bag of Urea is Rs.242 per bag (exclusive of charges towards neem-coating and taxes as applicable) and the MRP of 50 kg bag of urea is Rs 268 per bag (exclusive of charges towards neem coating and taxes as applicable). The difference between the delivered cost of Urea at farm gate and net market realization by the urea units is given as subsidy to the Urea manufacture/importer by the Government of India. Accordingly, all farmers are being supplied Urea at the subsidized rates.

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