Govt Prohibits Hoarding & Black Marketing of Fertilizers

In light of the Ukraine-Russia war's impact on the fertiliser trade, and in order to prevent possible hoarding and black marketing in India, the Centre has issued an order that will result in legal action against manufacturers and black marketers.

The Centre has also requested that dealers keep digital stock registers. India imports a large amount of phosphatic fertilizer from Russia.

Not only for India, but the situation has alarmed the rest of the world, with supply chain disruptions coming from both Russia and Ukraine. The government has stated that it is on the lookout for hoarding and black marketing of fertilizers, primarily potash.

"In cases where samples were drawn from dealers out of original sound bags (without any mark of tempering) and are found non-standard, both dealer and manufacturer shall be made parties for filing the case in the concerned court under the Act and proceedings under clause 31 of this Order," the order stated.

The Fertilizer (Inorganic, Organic, or Mixed) (Control) Amendment Order, 2022 was issued on March 7 in accordance with section 3 of the Essential Commodities Act, 1955 (10 of 1955) and was published late Tuesday night.

The order also requires dealers to 'keep a digital stock register in a form that clearly displays the date-wise stock position, opening balance, receipts during the day, sales during the day, and closing stock.'

Black Marketing of Fertilizers

Due to a severe shortage of fertilizers, Indian farmers are turning to the illicit market and paying high amounts for supplies.

Due to the shortage, a thriving market has developed where subsidized crop fertilizers are sold illegally at significantly higher prices than those set by the government. Farmers in severe need have been calling shady agents, who have been busy accepting requests.