Fertilisers have been declared as an essential commodity under the Essential Commodities Act, 1955. This was stated recently by Rao Inderjit Singh, minister of state for planning (independent charge) and chemicals and fertilisers, Government of India, in a written reply to a question on quality and prices of fertilisers, in Lok Sabha.
He added that in order to ensure the supply of an adequate quantity of good-quality fertilisers to the farmers, the government promulgated the Fertiliser (Control) (Organic, Inorganic and Mixed) Order, 1985 (FCO) and Fertiliser (Movement Control) Order, 1973.
Singh said that the quality of fertilisers was governed under the FCO provisions. The specifications of various fertilisers are specified under FCO. Clause 19 of FCO strictly prohibits the sale/manufacture of fertilisers which are not of prescribed standards. No person shall sell any product as fertiliser unless it is specified under the FCO.
He added that it is the prime responsibility of the state governments to ensure quality fertilisers to farmers as per FCO specifications and are adequately empowered to implement the provisions of FCO.
“Any violation of provisions of FCO will invoke both administrative and penal penalties. Under FCO, it is mandatory to indicate the maximum retail price (MRP) on bags of fertiliser and no person shall sell or offer for sale any fertiliser at a price exceeding the maximum price or rate fixed,” the minister stated.
Singh added that the reasonableness of MRP of phosphatic and potassic (P&K) fertilisers fixed by the fertiliser companies was examined by the Department of Fertilisers under the Nutrient-based Subsidy (NBS) Scheme.
It has been stipulated in the provisions that in cases, where after scrutiny, unreasonableness of MRP is established, or where there is no correlation between the cost of production or acquisition and the MRP printed on the bags, the subsidy would be restricted or denied even if the product is otherwise eligible for subsidy under the NBS Scheme.
In proven case of abuse of subsidy mechanism, the department of fertilisers, on the recommendation of the inter-ministerial committee, may exclude any grade/grades of fertilisers of a particular company or the fertiliser company itself from the NBS Scheme.
Singh stated that there was no report of instances of unauthorised sale of fertiliser from any state government. However, state governments have been adequately empowered to take actions against persons who indulge in illegitimate activities, violating the provisions of FCO, 1985, the Fertiliser (Movement Control) Order, 1973 and the Essential Commodities Act, 1955.
