States asked to curb illegal diversion of fertilisers

NEW DELHI: Irked by misuse of subsidy, the Centre has directed state governments to take firm steps to curb illegal diversion of fertilisers like urea to non-farm sectors, especially in Gujarat, Maharashtra and Haryana.

"Instances of illegal diversion of fertilisers to other industries has come to our notice. We have written to chief secretaries of the states for initiating action against persons involved in smuggling of fertilisers with the help of central/state enforcement agencies," a senior Fertiliser Ministry official told PTI.

It is estimated that about 2 million tonnes of soil nutrients, especially urea, is being smuggled out for use by plywood resin manufacturers, textiles and other industries every year, he said.

The official said, "We have received complaints of such incidents rampant in Gujarat, Maharashtra and Haryana. We have asked states to take serious action as central subsidy on fertilisers is being misused."

The government provides subsidy on fertilisers meant for agriculture purpose only. The difference between the cost of production and the maximum retail price is paid to manufacturers of fertilisers.

At present, urea is the cheapest fertiliser available in the market as compared to di-ammonium phosphate (DAP), potash and other phosphatic and potassic fertilisers.

Urea, whose price is still controlled by the government, is selling at a subsidised rate of Rs 5,310 per tonne as against the production cost of Rs 13,000-23,000 per tonne depending upon indigenous and imported nutrient.

India's requirement of fertiliser for the agriculture sector is estimated to be 55-60 million tonnes a year.