**Executive Summary**
This document is a response to an unstarred question raised in the Lok Sabha concerning overcharging and forced tagging of fertilizers, particularly DAP, in Punjab. It details the government's measures to ensure adequate fertilizer availability, prevent malpractice, and address complaints. The question was scheduled to be answered on December 12, 2025.
**Key Points / Main Content**
* **Fertilizer Availability in Punjab:**
* DAP availability in Punjab has been adequate during the Rabi 2025-26 season.
* From April 1, 2025, to December 8, 2025, 455,000 Metric Tons of DAP were available against a pro-rata requirement of 405,000 Metric Tons.
* Sales during the period were 298,000 Metric Tons, with a closing stock of 157,000 Metric Tons.
* **Responsibility and Action:**
* Ensuring adequate fertilizer availability at the state level is the mandate of the Department of Fertilizers.
* Distribution within the state is the responsibility of the Punjab State government.
* The state government ensures DAP and other fertilizers are available to farmers at fixed prices and resolves complaints promptly.
* State Governments are empowered to take action against overpricing and black marketing under the Essential Commodities Act, 1955, and the Fertilizer Control Order, 1985.
* The Department of Fertilizers forwards complaints of black marketing/overpricing to the concerned State Government for appropriate action.
* In FY 2025-26, the Punjab state government registered 4 FIRs and cancelled 3 Letters of Authorizations for overpricing/hoarding/tagging.
* **Preventive Measures:**
* Tagging/linking of other products with DAP is discouraged by the Department of Fertilizers.
* D.O. letters are regularly sent to State Governments requesting strict action to prevent tagging.
* Directions are issued to fertilizer companies not to indulge in such practices.
* **Government Steps for Availability:**
* The Department of Agriculture and Farmers Welfare (DA&FW) assesses state-wise and month-wise fertilizer requirements in consultation with State Governments before each cropping season.
* D/o Fertilizers allocates adequate fertilizer quantities based on DA&FW projections and monitors availability through monthly supply plans.
* Fertilizer movement is monitored via the Integrated Fertilizer Management System (iFMS).
* State Governments are advised to coordinate with manufacturers and importers for streamlining supplies.
* Weekly video conferences are held by DA&FW and D/o Fertilizers with State Agriculture Officials to take corrective actions for fertilizer dispatch.
**Impact Analysis**
**Stakeholder:** Farmers in Punjab
* **Impact:** Ensures availability of DAP and other fertilizers at fixed prices, addresses overcharging and forced tagging malpractices.
* **Action Required:** Report instances of overpricing or forced tagging to the State government for resolution.
**Stakeholder:** State Government of Punjab
* **Impact:** Responsible for the distribution of fertilizers within the state at the district level, must resolve complaints. The state will receive complaints received at the Department of Fertilizers.
* **Action Required:** Ensure transparent and adequate distribution of fertilizers, take action against overpricing, hoarding, and tagging, and coordinate with manufacturers and importers.
**Stakeholder:** Department of Fertilizers
* **Impact:** Mandated to ensure adequate fertilizer availability at the state level.
* **Action Required:** Allocate adequate fertilizer quantities, monitor availability, and address complaints forwarded from the Department of Fertilizers.
**Stakeholder:** Fertilizer Companies
* **Impact:** Must comply with directives against tagging and other malpractices.
* **Action Required:** Refrain from tagging/linking products with DAP and other fertilizers and adhere to government regulations.
Key Entities Referenced
Department of Fertilizers: A department under the Ministry of Chemicals and Fertilizers, responsible for ensuring the availability of fertilizers.
State Government of Punjab: Responsible for the distribution of fertilizers within the state at the district level and for addressing complaints related to overpricing.
Essential Commodities Act, 1955: Empowers State Governments to take action against black-marketing/overpricing of essential commodities like fertilizers.
Fertilizer Control Order, 1985: Notifies fertilizers as an essential commodity under the Essential Commodities Act, 1955.
DAP: Diammonium Phosphate, a commonly used fertilizer, subject to complaints of shortage and overcharging.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO. 2121 TO BE ANSWERED ON: 12.12.2025
OVERCHARGING AND FORCED TAGGING OF FERTILIZERS
2121: SHRI CHARANJIT SINGH CHANNI:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) whether the Government has taken note of complaints, regarding shortage of
DAP, alleged overcharging up to Rs. 1,900 per 50-kg bag against the fixed price of
Rs. 1,350 from farmers in Punjab, particularly in Sangrur and neighbouring districts,
if so, the details thereof and if not, the reasons therefor;
(b) whether the Government is aware of the instances of dealers forcing farmers
to buy other fertilizers along with DAP, if so, the details thereof and if not, the
reasons therefor;
(c) whether any action has been initiated against any dealer or agency found
involved in overpricing or “tagging”, if so, the details thereof along with the action
taken thereon and if not, the reasons therefor;
(d) whether any audit or review of the DAP supply chain in Punjab has been ordered
to ensure transparent and adequate distribution, if so, the findings thereof and if not,
the reasons therefor; and
(e) whether the Government proposes additional measures to prevent such
malpractice, if so, the details thereof and if not, the reasons therefor?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a) The availability of DAP in the State of Punjab has remained adequate during
the ongoing Rabi 2025-26 season. From 01.04.2025 to 08.12.2025, 4,55,000 Metric
Tons of DAP has been made available in the State against the pro-rata requirement
of 4,05,000 Metric Tons. The sales during the said period has been 2,98,000 Metric
Tons and the State holds closing stock 1,57,000 Metric Tons of DAP.
Further, the mandate of the D/o Fertilizers is to ensure adequate availability of
fertilizers at State level. However, the assessment and distribution of fertilizers within
the State at district level is done by the concerned State government. Accordingly,
State government of Punjab has informed that they ensure that DAP and other
fertilizers are made available to the farmers according to their demand at their fixed
prices. The complaints regarding the same are resolved by them as soon as possible.-2-
(b) to (e) 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/ overpricing, as per provisions of EC Act. Any complaints received
at Department of Fertilizers level regarding black marketing/over-pricing of
fertilizers is sent to concerned State Government to take appropriate action
under Essential Commodities Act, 1955 and Fertilizer Control Order, 1985.
Accordingly, as informed by the State government of Punjab, during the FY 2025-26,
04 FIR's have been registered and 03 Letter of Authorizations have been cancelled
as an enforcement action against the dealers/agencies found involved in
overpricing/hoarding/tagging.
Further, tagging/linking of other products with DAP and other fertilizers is not
encouraged by Department of Fertilizers. In this regard, D.O. letters are regularly
written to State Governments requesting them to take strict action as per extant rules
to prevent tagging. Besides, suitable directions are issued to fertilizer companies
directing them not to indulge in such practices.
Moreover, following steps are taken by the Government every season for ensuring
timely and adequate availability of fertilizers in the country, including the State of
Punjab:
(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
Management 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.
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