A Parliamentary Standing Committee on Chemicals and Fertilizers, in its report on fertiliser self-sufficiency and import reduction, has recommended stringent policies to stop black-marketing, smuggling, diversion and pilferage of subsidised fertilisers across India.

• The panel flagged increasing cases of black-marketing, smuggling and diversion, despite fertilisers receiving high government subsidies.

Key Recommendations

• Stronger Policies and Random Checks:
• • The committee urged the government to frame more stringent guidelines in consultation with all stakeholders and States.
  • It recommended random checks to verify both quality and quantity of fertilisers sold.
• Nationwide Lab Network: The committee sought to examine the feasibility of a nationwide network of laboratories to monitor fertilizer quality.
• Grievance Redressal Mechanism: It recommended establishing a timely complaint-redressal system for issues related to black-marketing and diversion.
• Urea Subsidy Scheme: The panel emphasised continuing the Urea Subsidy Scheme (indigenous urea, imported urea, freight subsidy).
  • The committee asked for a holistic approach since the scheme ensures farmer welfare and promotes the recommended 4:2:1 N-P-K ratio.
• NBS Policy for P&K Fertilisers: The committee recommended continuing the Nutrient Based Subsidy (NBS) system and making it more effective by –
  • Increasing the number of P&K fertilisers under NBS (with FCO approval)
  • Rationalising prices to encourage domestic production and farmer use
• Central Monitoring Mechanism: The committee called for a centralised monitoring system to trigger timely action during supply shocks and to frame policy for penalising defaulting agencies.
• Nano Fertilisers: The committee recommended long-term, nationwide field trials of Nano Fertilisers across diverse crops and agro-climatic regions.
• Modernisation/Revival of Aging Urea Plants: Constitute a special task force to upgrade, modernize or revive old plants using state-of-the-art technology, and promote new brownfield/greenfield projects.
• Long-Term Agreements: Government must pursue joint ventures, long-term supply contracts, and secure access to foreign phosphate & potash resources.
  • India imports 95% phosphate and 100% potash.

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