**Executive Summary**
This document presents the Indian government's response to complaints regarding black marketing, irregularities in fertilizer supply, and artificial shortages of DAP and Urea. The response, delivered on December 5, 2025, addresses measures taken to ensure adequate fertilizer availability, prevent illegal activities, and monitor distribution. The document also provides an Annexure that summarises action taken by State Governments between April 2025 and November 2025 to check black marketing, hoarding, quality check, and diversion.
**Key Points / Main Content**
* **Fertilizer Availability and Essential Commodity Status**:
* The availability of fertilizers has remained adequate in the States, including Rajasthan, during the ongoing Rabi 2025-26 season.
* Fertilizers are declared as essential commodities under the Essential Commodities Act, 1955, and the Fertilizer Control Order, 1985.
* **State Government Empowerment**:
* State Governments are empowered to take action against individuals involved in black-marketing as per the EC Act.
* Complaints received by the Department of Fertilizers are forwarded to State Governments for action.
* **Measures for Ensuring Fertilizer Availability**:
* The Department of Agriculture and Farmers Welfare (DA&FW) assesses fertilizer requirements in consultation with State Governments before each cropping season.
* The Department of Fertilizers allocates adequate quantities of fertilizers based on DA&FW's projections and monitors availability.
* An online web-based Integrated Fertilizer Monitoring System (iFMS) tracks the movement of major subsidized fertilizers.
* State Governments are advised to coordinate with manufacturers and importers for timely supply placement.
* Regular weekly video conferences are conducted to address fertilizer dispatch issues.
* Distribution of fertilizers within states at the district level is managed by the concerned State Government.
* **Urea Subsidy Scheme**:
* Urea is provided to farmers at a statutorily notified Maximum Retail Price (MRP).
* The MRP of a 45 kg bag of urea is Rs. 242 per bag, excluding neem coating charges and applicable taxes.
* The government provides a subsidy to urea manufacturers/importers to cover the difference between the delivered cost at farm gate and net market realization.
* **Nutrient Based Subsidy (NBS) Policy**:
* The government has implemented Nutrient Based Subsidy (NBS) Policy effective April 1, 2010, for Phosphatic and Potassic (P&K) Fertilizers.
* A fixed amount of subsidy, decided on an annual/bi-annual basis, is provided on notified P&K fertilizers.
* To ensure DAP affordability, special provisions have been extended to both imported and domestic DAP and imported TSP over and above NBS subsidy for Rabi 2025-26.
* **Annexure**
* Action taken by the State Governments from April 2025 to November 2025 to check black marketing, hoarding, quality check, and diversion.
**Impact Analysis**
**Farmers**
* **Impact**: Farmers are affected by the availability and pricing of fertilizers. The government's measures aim to ensure adequate supply at reasonable prices.
* **Action Required**: Farmers should report any instances of black marketing or irregularities to their State Governments for appropriate action.
**State Governments**
* **Impact**: State Governments are responsible for enforcing regulations related to fertilizer distribution and taking action against illegal activities.
* **Action Required**: State Governments must take appropriate action against persons involved in black-marketing as per provisions of the EC Act and the Fertilizer Control Order. They must also coordinate with manufacturers and importers to streamline fertilizer supplies. They are to assess and monitor fertilizer requirements.
**Fertilizer Manufacturers and Importers**
* **Impact**: Manufacturers and importers are subject to government regulations and subsidies for urea and P&K fertilizers.
* **Action Required**: Manufacturers and importers must comply with the Urea Subsidy Scheme and the NBS Policy, and coordinate with State Governments for timely supply placement.
Key Entities Referenced
Essential Commodities Act, 1955: Act under which fertilizers are declared as essential commodities, empowering State Governments to act against black-marketing.
Fertilizer Control Order, 1985: Order notified under the Essential Commodities Act regarding fertilizer quality and distribution.
Ministry of Chemicals and Fertilizers: The primary government body responsible for policies related to fertilizers.
Integrated Fertilizer Monitoring System (iFMS): An online web-based monitoring system to track subsidized fertilizers across the country.
Nutrient Based Subsidy (NBS) Policy: Policy providing a fixed amount of subsidy on notified P&K fertilizers.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO.✝979 TO BE ANSWERED ON: 05.12.2025
COMPLAINTS AGAINST BLACK MARKETING OF DAP
✝979: SHRI BABU SINGH KUSHWAHA:
SHRI UMMEDA RAM BENIWAL:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) whether the Government has taken note that the number of complaints
pertaining to black marketing, irregularities in supply of fertilizers and artificial shortage
of DAP and Urea have increased in recent months causing serious problems for
farmers in the country, if so, the details thereof, State-wise and month-wise particularly
in the State of Rajasthan;
(b) the administrative or punitive action taken thereon against erring officials,
dealers, or sellers in the States from where complaints have been received during the
last one month, State- wise and month-wise;
(c) whether the Union Government has been implementing any special campaign,
monitoring mechanism and chalked out any joint action plan to prevent black marketing
and hoarding of fertilizers;
(d) the steps being taken by the Government to ensure timely and adequate supply
of fertilizers at reasonable price to farmers during the upcoming Rabi and Kharif
seasons; and
(e) whether the fertilizer distribution system are being linked with digital tracking or
portal-based monitoring, if so, the details thereof
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a) to (c) The availability of fertilizers has remained adequate in the States, including
the State of Rajasthan, during the ongoing Rabi 2025-26 season. Further, fertilizers
are declared as an essential commodity under the Essential Commodities Act, 1955
and notified under Fertilizer Control Order, 1985. State Governments are
empowered to take action against persons involved in black-marketing, as per
provisions of EC Act. Any complaints received at Department of Fertilizers level
regarding black-marketing of fertilizers is sent to concerned State Government to take
appropriate action under Essential Commodities Act, 1955 and Fertilizer Control
Order, 1985. Accordingly, as per the information received from the States-2-
regarding enforcement measures taken by them against black-marketing and other
malpractices for the period 01.04.2025 to 28.11.2025 is placed at Annexure.
(d) & (e) Following steps are taken by the Government every season for ensuring
timely and adequate availability of fertilizers in the country, including the State of
Rajasthan:
(i) Before the commencement of each cropping season, Department of Agriculture
and Farmers Welfare (DA&FW), in consultation with all the State Governments,
assesses the State-wise & month-wise requirement of fertilizers.
(ii) On the basis of requirement projected by DA&FW, D/o Fertilizers allocates
adequate quantities of fertilizers to States by issuing monthly supply plan and
continuously monitors the availability.
(iii) The movement of all major subsidized fertilizers is monitored throughout
the country by an on-line web-based monitoring system called integrated
Fertilizer Monitoring System (iFMS).
(iv) The State Governments are regularly advised to coordinate with manufacturers
and importers for streamlining the supplies through timely placement of indents.
(v) Regular Weekly Video Conference is conducted jointly by DA&FW and D/o
Fertilizers with State Agriculture Officials and corrective actions are taken to dispatch
fertilizer as indicated by the State Governments.
(vi) Distribution of fertilizers within the State at district level is done by the
concerned State Government.
Further, under the Urea Subsidy Scheme, Urea is provided to the farmers at a
statutorily notified Maximum Retail Price (MRP). The MRP of 45 kg bag of urea is Rs.
242 per bag (exclusive of charges towards neem coating and taxes as applicable).
The difference between the delivered cost of urea at farm gate and net market
realization by the urea units is given as subsidy to the urea manufacturer/importer by
the Government of India. Accordingly, all farmers are being supplied urea at the
subsidized rate.
Government has implemented Nutrient Based Subsidy (NBS) Policy w.e.f. 01.04.2010
for Phosphatic and Potassic (P&K) Fertilizers. Under the policy, a fixed amount of
subsidy, decided on annual/bi-annual basis, is provided on notified P&K fertilizers is
fixed by fertilizer companies as per market dynamics at reasonable level which is
monitored by the Government, NBS policy is uniformly applicable across the country.
However, to make DAP available at affordable price of Rs. 1,350 per 50 kg bag, special
provisions like Rs. 3,500 per MT to cover ‘Other Costs’ which includes costs incurred
from factory gate to farm gate, advantage/disadvantage due to increase/decrease in
international prices, provision for GST component included in the MRP and provision
for reasonable return @4% of net MRP (MRP-GST) have been extended to both
imported and domestic DAP and imported TSP over and above NBS subsidy for Rabi
2025-26 season to keep the prices of fertilizers stable.
*****Annexure referred to in reply to part ( a) to (c ) of Lok Sabha Unstarred Question No.979 for answer on 05.12.2025 Annexure
Cumulative Statement from April 25 to November 25 (as on 28.11.2025)
Action taken by the State Government to check black marketing, hoarding, quality check, diversion etc during the Kharif season from April 2025 to November 2025 as on date (28.11.2025)
Black Marketing Hoarding Sub Standard Quality Diversion Toatal
Convicti
No. of No. of No. of No. of Sho No. of
on with
No. of Show licenses FIR Show licenses FIR Show licenses FIR Show licenses FIR w licenses FIR
States Inspecti cause cancelle registered cause cancelle registered cause cancelle registered cause cancelle registered details* caus cancelle registered
Andhra Pradesh 11181 5 3 9 10 6 3 83 0 0 7 2 3 NIL 105 11 15
Arunachal Pradesh 0 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0
Assam 3820 12 4 1 59 0 0 36 0 0 27 0 0 NIL 134 4 1
Bihar 15499 1035 607 77 7 0 0 0 0 0 0 0 0 NIL 1042 607 77
Chhattisgarh 6172 294 13 4 29 1 0 136 5 0 24 0 0 NIL 483 19 4
Dadar & Nagar 0 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0
Delhi 255 0 0 1 0 0 0 3 0 0 0 3 0 NIL 3 3 1
Goa 614 544 180 6 10 0 0 32 1 0 16 0 0 NIL 602 181 6
Gujarat 12210 33 3 1 0 0 0 83 2 0 7 3 11 NIL 123 8 12
Haryana 4693 49 5 7 18 18 4 48 10 5 13 5 6 NIL 128 38 22
Himachal Pradesh 0 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0
Jammu & Kashmir 3694 142 44 2 31 2 0 55 0 0 8 0 0 NIL 236 46 2
Jharkhand 759 57 20 11 32 4 0 2 0 0 1 1 0 NIL 92 25 11
Karnataka 7093 365 22 0 243 5 0 221 14 2 84 6 6 NIL 913 47 8
Kerala 1299 0 0 0 0 0 0 48 0 0 4 0 3 NIL 52 0 3
Madhya Pradesh 5581 0 0 72 0 0 0 606 44 4 631 160 15 NIL 1237 204 91
Maharashtra 44059 16 0 16 0 0 0 1155 1139 37 1 73 1 NIL 1172 1212 54
Manipur 3 0 0 0 0 0 0 0 0 0 1 0 0 NIL 1 0 0
Meghalaya 579 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0
Mizoram 21 1 0 0 0 0 0 0 0 0 4 0 0 NIL 5 0 0
Nagaland 72 14 0 14 0 0 0 101 0 0 2 64 1 NIL 117 64 15
Odisha 7031 4 3 2 0 0 0 47 1 0 1966 107 3 NIL 2017 111 5
Puducherry 39 0 0 0 0 0 0 0 0 0 0 0 0 NIL 0 0 0
Punjab 5617 37 1 1 20 0 1 192 65 3 0 0 4 NIL 249 66 9
Rajasthan 11505 589 76 46 45 17 30 451 1 2 15 16 25 NIL 1100 110 103
Tamilnadu 18805 13 0 4 6 8 0 33 25 0 112 17 1 NIL 164 50 5
Telangana 115321 5 9 3 4 2 0 79 0 0 4 0 5 NIL 92 11 8
Tripura 694 0 0 0 9 0 0 0 0 0 0 0 0 NIL 9 0 0
Uttar Pradesh 29401 2043 2742 165 164 139 8 141 130 12 88 7 12 3 2436 3018 197
Uttarakhand 282 0 0 0 0 0 0 0 0 0 43 0 0 NIL 43 0 0
West Bengal 33777 0 0 0 0 0 0 259 0 0 0 0 0 NIL 259 0 0
Total 340076 5258 3732 442 687 202 46 3811 1437 65 3058 464 96 3 12814 5835 649
* - Details to be submitted- case number, year of FIR and year of filing of case and date of order. Above data has been compiled as reported by states.