Centre cracks down on diversion of subsidised fertilisers

The Union fertilisers department has clamped down on large scale illegal diversion of subsidised fertilisers meant for farmers to industrial units, busting several interstate networks in recent weeks.

The Union fertilisers department has clamped down on large scale illegal diversion of subsidised fertilisers meant for farmers to industrial units, busting several interstate networks in recent weeks, an official said on Thursday.

A farmer sprays fertiliser on a tomato field at Wagholi in Pune. (HT file)

Amid reports of cultivators struggling to get subsidised fertilisers in some regions, especially Bihar, the official said the Centre was coordinating with states to ensure steady availability of crop nutrients. He denied any shortage and said the country’s inventory of fertilisers was adequate to meet requirements for the ongoing winter-sown season.

“A major crackdown on illegal diversion of fertilisers meant for farm use is on. Nearly 100 networks have been busted in recent times,” the official said, adding diversion can cause local shortages despite sufficient stocks.

Raids are being carried out on a routine basis based on surveillance and intelligence, the official added.

The department of fertilisers in coordination with revenue officials and police targeted over 60 units across Haryana, Kerala, Rajasthan, Telangana, Gujarat and Uttar Pradesh, which bought cheap urea stocks meant for farmers, repackaged them as industrial-grade urea and sold them as industrial raw materials at huge profits, defrauding the government.

Authorities also raided about 40 units selling admixtures of various subsidised fertilizers meant for farmers to industrial users at market rates. The Centre has directed cancellation of “25 defrauding units, majority of which are located in Maharashtra, Gujarat, Tamil Nadu and Bihar”, the official said.

India, the world’s largest buyer of urea and di-ammonium phosphate, has been hit by a sharp rise in global fertiliser prices due to supply disruptions, costlier raw materials, higher freight charges as well as lower global availability due to US sanctions on exporters Russia and Belarus.

Officials, cumulatively, have seized 25,000 bags (45 kg each) of cheap urea meant for agricultural use worth ₹7.5 crore. They also unearthed Goods and Services Tax evasion worth ₹63.43 crore networks in these illegal businesses.

“Of this, ₹5.14 crore have been recovered,” the official cited above said. Over 30 people have been arrested and 10 FIRs have been registered so far.

Apart from being a valuable crop nutrient, urea is also a raw material in various industries, such as resin, plywood, crockery making and moulding-powder units.