Ministry of Chemicals and Fertilizers
azadi ka amrit mahotsav

Government Streamlines Fertilizer Logistics to Ensure Timely Availability


Strict Action Empowered Under EC Act Against Fertilizer Tagging Malpractices

Posted On: 24 MAR 2026 8:58PM by PIB Delhi

The Government of India has undertaken comprehensive measures to strengthen logistics and supply chain management for fertilizers, ensuring timely movement across States, particularly during peak agricultural seasons. In a written reply to a question in the Rajya Sabha today, Smt. Anupriya S. Patel, MoS Chemicals and Fertilizers, informed that before each cropping season, the Department of Agriculture and Farmers Welfare, in consultation with State Governments, assesses state-wise and month-wise requirements of fertilizers. Based on these projections, the Department of Fertilizers issues monthly supply plans and continuously monitors availability.

The movement of subsidized fertilizers is tracked through the online Integrated Fertilizer Management System (iFMS), while State Governments are advised to coordinate with manufacturers and importers for timely placement of indents. Regular coordination meetings are also held with the Ministry of Railways to ensure sufficient rakes and priority movement of fertilizers. Any demand-supply gaps are met through advance imports to guarantee adequate availability. Distribution within States is managed by the respective State Governments.

During the ongoing Rabi 2025-26 season, the availability of fertilizers such as Urea, DAP, MOP, and NPK has remained adequate across all States. Under the Urea Subsidy Scheme, farmers continue to receive urea at the statutorily notified Maximum Retail Price of ₹242 per 45 kg bag (exclusive of neem coating charges and applicable taxes), with the difference between delivered cost and market realization provided as subsidy to manufacturers and importers.

Besides, the Government has implemented Nutrient Based Subsidy (NBS) Scheme w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers.  Under NBS policy, the subsidy is provided to manufacturer/ importer on notified P&K fertilizers on its PoS sale during the season, depending on their nutrient content to ensure availability of fertilizers to farmers. The Government monitors international prices of key fertilizers and raw materials and fluctuations, if any, are subsumed while fixing NBS rates for P&K fertilizers annually / bi-annually to ensure affordable supply of P&K fertilizers to the farmers. Further, to ensure affordability, special provisions like Rs. 3500 per MT to cover 'Other Costs' which includes costs incurred from factory gate to farm gate, advantage / disadvantage due to increase / decrease in international prices, provision for GST component included in the MRP and provision for reasonable return @ 4% of net MRP (MRP-GST) have been extended to both imported and domestic DAP and imported TSP over and above NBS subsidy for Kharif 2025 and Rabi 2025-26 seasons.

On the issue of forced bundling or tagging of non-essential products with fertilizers, the Minister clarified that fertilizers are declared as essential commodities under the Essential Commodities Act, 1955 and notified under the Fertilizer Control Order, 1985. State Governments are empowered to take action against persons involved in such malpractices, as per provisions of EC Act. Any complaint received at Department of Fertilizers level regarding over-pricing/tagging of fertilizers is sent to concerned State Government to take appropriate action under Essential Commodities Act, 1955 and Fertilizer Control Order, 1985.

Further, tagging/bundling of other products with fertilizers is not encouraged by Department of Fertilizers. Accordingly, suitable directions are issued to fertilizer companies directing them not to indulge in such practices and State Governments are also advised to take strict action as per extant rules to prevent such practice.

These measures highlight the Government’s commitment to ensuring efficient logistics, equitable availability, and affordability of fertilizers, while safeguarding farmers against unfair practices.

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Neeraj Kumar Bhatt/ Amit Kumar/ Shatrughna Prasad

cmc.fertilizers[at]gmail[dot]com


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