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Govt Tightens Rules on Fertilizer Pricing, Distribution to Protect Farmers

The government has reinforced regulatory measures to ensure fair pricing and smooth distribution of Phosphatic and Potassic (P&K) fertilizers. It has capped reasonable profit margins for manufacturers and importers while mandating clear display of MRP and subsidy on every bag. Production and distribution are being closely monitored in real-time through the Integrated Fertilizer Monitoring System (iFMS). Weekly coordination meetings are held with state officials to promptly address any supply chain issues.

Key Points: Govt Reinforces Fair Pricing Rules for P&K Fertilizers

  • Caps profit margins for manufacturers & importers
  • Mandates clear MRP & subsidy display on bags
  • Monitors supply via online iFMS portal
  • Makes suppliers responsible for delivery to retailers
2 min read

Govt reinforces regulatory measures to ensure fair pricing, smooth distribution of P&K fertilizers

New measures ensure transparent MRP, monitor supply via iFMS, and cap profit margins for manufacturers to protect farmers from overcharging.

"Charging farmers more than the printed MRP constitutes an offence and is punishable under the Essential Commodities Act, 1955 - Government Statement"

New Delhi, January 5

The government has reinforced regulatory measures to ensure fair pricing and smooth distribution of Phosphatic and Potassic fertilizers, aiming to protect farmers' interests and prevent market distortions.

As per the extant guidelines, any profit earned beyond the prescribed limit will be treated as unreasonable and recovered from the concerned company (profit margin of up to 8% for importers, 10 % for manufacturers and 12% for Integrated manufacturers over the cost of production of the final P&K product is considered reasonable).

To enhance transparency, the government has mandated that every fertilizer bag must clearly display the Maximum Retail Price (MRP) along with the applicable subsidy per bag and per kilogram. Charging farmers more than the printed MRP constitutes an offence and is punishable under the Essential Commodities Act, 1955, the government said in a statement.

The production, movement, and import of fertilizers are being closely monitored through the online Integrated Fertilizer Monitoring System (iFMS). The web-based platform provides real-time oversight of fertilizer distribution, imports, and the production activities of domestic manufacturing units.

In addition, all manufacturers, marketers, and importers of P&K fertilizers, including Single Super Phosphate (SSP) manufacturers, are required to ensure delivery of fertilizers up to the retail point on a Freight on Road (F.O.R.) basis, placing the responsibility of transportation squarely on the suppliers.

To further strengthen coordination, the Department of Fertilizers (DoF) allocates fertilizer quantities based on assessed requirements through a monthly supply plan and continuously tracks availability across regions via the iFMS portal.

Weekly video conferences between the Department of Agriculture & Farmers Welfare (DA&FW), the DoF, and State Agriculture officials are also held to review the situation on the ground and promptly address any emerging supply issues.

- ANI

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Reader Comments

S
Sarah B
As someone who works in agricultural policy, the iFMS system is a crucial tech intervention. Real-time tracking can prevent hoarding and black marketing. The key will be ensuring last-mile connectivity and training for state-level officials to use the data effectively.
P
Priyanka N
Good move, but execution is everything. My father is a farmer in Punjab, and he has faced issues where the promised stock never reaches the local cooperative. Weekly video conferences sound good, but will they actually solve local shortages quickly? Action on the ground matters more than meetings.
A
Aman W
Finally! Putting the transport responsibility on suppliers (F.O.R. basis) is a big relief for small retailers. We used to bear the freight cost and it cut into our tiny margins. This should stabilize prices at the village shop. 👍
K
Karthik V
Capping profit margins is necessary, but 8-12% seems reasonable to keep companies in business. The focus should be on ensuring the 'cost of production' is calculated fairly without loopholes. Overall, a balanced approach to protect both farmers and industry.
M
Meera T
Transparency in subsidy is the best part. When farmers know exactly how much the government is supporting them, it builds trust. Hope this system is extended to all agricultural inputs. Jai Kisan!

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