Fertiliser diversion: Govt cancels licences of 112 units, files 30 FIRs in last 6 months

Seeking to apply brakes on diversion of subsidised fertilisers for non-farming purposes, the government on Tuesday said it has conducted a surprise inspection of 370 plants in the last six months and cancelled licences of 112 violating manufacturing units and registered 30 FIRs. According to the fertiliser ministry data, out of 370 units located in 15 states, the inspection was conducted in 220 mixture fertiliser units, 130 urea units, 15 SSP fertiliser units and 5 exporters.

The maximum number of fertiliser units were inspected in Gujarat (92), followed by Kerala (54), Tamil Nadu (40) and Karnataka (39) during the last six months, the data showed. "There is a fertiliser crisis in the world. In such a situation, a subsidy of Rs 2,000-2500 per bag is being given to farmers in our country. Strict action will be taken against those engaged in diversion, be it distributors or users or outlets," Chemicals and Fertilisers Minister Mansukh Mandaviya told reporters.

About 268 samples were taken from these units, out of which 120 samples contained subsidised urea, 89 samples were sub-standard and a result of the rest 59 samples are awaited, he said.

Mandaviya further said out of 220 units inspected, the licence of 112 has been cancelled. Also, urea diversion was found in 120 units out of 130 inspected manufacturing units. "About 30 FIRs have been launched, 70,000 urea bags have been confiscated and 11 have been jailed under the Essential Commodities Act," he added.

The minister said the government has also initiated action against those units that are found violating the GST law. The government provides subsidies on both urea and non-urea fertilisers to ensure farmers get the soil nutrients at affordable rates.

The government has made neem-coated urea mandatory since May 2015 with an aim to curb diversion. Still, the diversion is happening as some units are processing the neem-coated urea for industrial use.