The fertilizer ministry cracked down on networks illegally diverting subsidized farm chemicals for industrial use and marketing substandard products in several states, seizing 66,276 bags of 45kg each in the year ended March 31, official data show.
The ministry’s flying squad that seized the material is a crack surveillance team that monitors domestic movement of crop nutrients and tracks illegal sales and diversion of fertilisers.
Authorities raided and shut 94 units selling admixtures of various subsidized fertilizers either for diversion to industrial users or making spurious products, the data showed. Apart from being a valuable crop nutrient, urea is a raw material in various industries, such as resin, plywood, crockery making and moulding powder units.
India relies on imports to meet its domestic demand for fertilisers, which are subsidized for millions of farmers. The country’s food security is closely linked to availability of crop nutrients. Global prices rocketed in 2022 due to the Ukraine conflict, stretching the government’s estimated spending on fertilizer subsidies for 2022-23 to an estimated ₹2.25 lakh crore.
The department of fertilisers in coordination with revenue officials and local police carried out surprise inspections 289 units in 14 states, according to the data. Networks involved in illegal operations were busted in Gujarat, Haryana, Kerala, Rajasthan, Karnataka, Tamil Nadu, Bihar and Maharashtra in 2022-23 financial year, an official said, requesting anonymity.
{{/usCountry}}The department of fertilisers in coordination with revenue officials and local police carried out surprise inspections 289 units in 14 states, according to the data. Networks involved in illegal operations were busted in Gujarat, Haryana, Kerala, Rajasthan, Karnataka, Tamil Nadu, Bihar and Maharashtra in 2022-23 financial year, an official said, requesting anonymity.
{{/usCountry}}States have taken action against units found buying cheap urea stocks meant for farmers, repackaging them as industrial-grade urea and selling them as industrial raw materials, defrauding the government. As many as 28 first information reports have been lodged for diversion of urea, the official said.
Of the 66,276 bags, the government disposed of 30,000, the official said. The flying squad also unearthed Goods and Services Tax evasion worth ₹63.43 crore. Of this, nearly ₹6 crore has been recovered.
India won’t need to make spot imports of urea for the oncoming kharif season, with enough stocks to last six months, fertilizer and chemicals minister Mansukh Mandaviya said on March 22.
The estimated urea demand is 17.9 million tonne, while domestic output is pegged at 13.9 million tonne. An opening balance of 5.5 million tonne will take total availability to a surplus 19.4 million tonne, data from the ministry showed.