The government has cancelled 5,371 licences of fertiliser firms for malpractices including black marketing, hoarding, diversion, and distributing substandard material, Union Minister Jagat Prakash Nadda informed the Rajya Sabha on Tuesday. The actions were taken under the Essential Commodities Act, 1955, and the Fertiliser Control Order.
From April 1 to November 28, the Centre issued 12,814 show-cause notices to firms involved in black marketing, hoarding, diversion, and substandard supply. In this period, 5,835 licences were cancelled and 649 FIRs lodged, highlighting the government’s stringent measures to ensure compliance and protect farmers.
Breaking down the actions, Nadda said for black marketing, 5,058 show-cause notices were issued, 3,732 licences cancelled, and 442 FIRs lodged. For hoarding, 687 notices were sent, 202 licences cancelled, and 446 FIRs filed. In cases of substandard material, 3,811 notices were issued, 1,437 licences cancelled, and 65 FIRs filed.
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The minister emphasized that while states handle local enforcement, the Centre monitors fertiliser supplies in real-time through the Integrated Fertiliser Monitoring System (IFMS). This ensures that fertilisers reach farmers on time, preventing shortages despite some diversion or hoarding at the dealer level.
Nadda acknowledged challenges such as farmers purchasing more fertiliser than their capacity, which requires cooperation from state governments to manage stock effectively. He stressed that the central government ensures timely delivery, while states support in controlling excess withdrawals and illegal practices.
Responding to concerns raised by BJP MP Kiran Choudhary, Nadda assured that the Ministry will coordinate with dealers and companies to prevent financial exploitation of farmers, including unnecessary purchases beyond fertilisers, and strengthen protocols to penalize violations in distribution practices. This concerted effort reflects the government’s commitment to protect farmers’ interests, maintain fair pricing, and eliminate malpractice in the fertiliser sector.
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