Parliamentary panel seeks ‘more stringent policies and guidelines’ to stop black-marketing, smuggling and pilferage of fertilisers

The committee urged that more stringent policies and guidelines be developed in consultation with all stakeholders and state governments. These measures should aim to ensure the proper sale and distribution of fertilisers across the country, eliminating malpractices such as black marketing, smuggling, and pilferage at all stages. Random checks should be conducted to verify both the quality and quantity of fertilisers, it said.

The committee said it would like to explore the feasibility of establishing a nationwide network of laboratories to monitor the quality of fertilisers sold. Also, it sought to implement a grievance redressal mechanism to ensure prompt action and resolution of complaints related to this matter. The committee said it requests to be informed about the actions taken on this issue.

The report of the committee was supposed to be laid in Lok Sabha during the Parliament’s Monsoon session. It was laid in Rajya Sabha on August 21 and later presented to Lok Sabha Speaker Om Birla on October 4.

Noting that fertilisers were declared as an essential commodity under the Essential Commodities Act, 1955 and notified under the Fertilizer Control Order, 1985, the committee said, “State Governments are empowered to take action against persons involved in blackmarketing/diversion/smuggling as per provisions of EC Act.”

“Admittedly, complaints received at the Department of Fertilizers level regarding such cases is sent to concerned State Government to take appropriate action under Essential Commodities Act, 1955 and Fertilizer Control Order, 1985,” said the committee headed by Trinamool Congress (TMC) MP Kirti Azad.

Panel calls for continuation of urea subsidy scheme

The committee also highlighted the need for continuation of the urea subsidy scheme, which has three components: indigenous urea, imported urea and uniform freight subsidy.

“The Committee were apprised that the evaluation for review of the continuation of Urea Subsidy Scheme beyond 31.03.2025, is under consideration in the Department. The Committee, therefore, impress upon the Department to take a holistic view for continuance of the Urea subsidy policy, in view of its numerous benefits to all stakeholders including the farmers; and further aiming to promote the use of desired proportion of Nitrogen, Phosphate and Potash (4:2:1) in farming, in our Country,” noted the committee.

The committee also recommend that the present system of Nutrient Based Subsidy (NBS) Policy in P&K fertilisers may be continued and measures be taken to make it more effective by increasing the number of P&K fertilisers under NBS policy with the approval of FCO, rationalisation of prices of P&K fertilisers, etc. with a view to boost manufacturing and encouraging its use by the farmers.

The committee also noted that only 19.7 LMT of P&K fertilisers were imported during the year against the targeted import of 30 LMT by the companies under Open General License, due to their financial compulsions.

“This resulted in the shortage of DAP in the Country and led to its black marketing,” it said.

Moreover, there was a shortage of fertilisers, especially DAP, in the country, due to international factors, as a particular country did not supply fertilisers to India, it said.

Keeping in view that the matter is of serious concern, the committee desires that a Central monitoring mechanism be developed to take timely, effective actions during such emergent situations and a policy be framed for suitable action against the defaulting agencies, etc, it said.

Long-term trials of nano fertilisers

The committee also recommended conducting long-term trials of nano fertilisers to establish their efficacy. The committee noted that since nano urea was notified in 2021 and various nano fertiliser products are currently being developed by fertiliser companies through research, it recommends that the department conduct long-term field trials on the application of nano fertilisers across different crops nationwide.

These trials should be carried out in coordination with various research organisations and other relevant entities to thoroughly assess and validate the benefits and drawbacks of using nano fertilisers, it said.

This evaluation should focus on crop productivity, the nutritional quality of the produce, and soil health. The goal is to enable farmers to optimally adopt nano fertilisers as a replacement for conventional fertilisers, stated the committee.

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