Govt warns on tagging non-subsidized products to fertilizers

New Delhi, Jul 26 (PTI) The government has warned fertiliser manufacturers that strict action will be taken against forced tagging of non-subsidised products like pesticides, nano-based crop nutrients to farmers while selling subsidised soil nutrients like urea and DAP.

According to sources, Department of Fertilizers, under Ministry of Chemicals and Fertilizers, on July 21 wrote a letter to top executives of all fertiliser companies regarding this issue.

"It has come to the notice of the Department that some non-subsidized products such as pesticides, nano fertilizers, bio-stimulants and other products are being tagged with subsidized fertilizers like urea and DAP/NPKs at the time (of sale) to the farmers," the letter said.

The Department mentioned that fertilizers are Essential Commodities under the Essential Commodities Act, 1955 and hence, the unauthorized tagging of other products with subsidized fertilizers would mean violation of this legislation as well as the Fertilizer Control Order, 1985.

The Department noted that it has been issuing advisories to discourage such practices.

"However, it has been observed that dealers and retailers of some companies continue to tag non-subsidized products while selling subsidized fertilizers to farmers," the Department said, adding that such wrong practices put undue financial burden on farmers.


The Department is getting complaints and grievance petitions, which reflects that this wrong practice is widespread and persistent, undermining the aim of the government's fertilizer subsidy framework.

It directed the top management to "strictly ensure that no such tagging of non-subsidized products with subsidized fertilizers is done for the farmers."

Any instance of such "malpractice" will invite "strict action" under relevant statutory provisions, the Department warned.

In 2022-23, the Centre's fertiliser subsidy stood at Rs 2,54,798.88 crore. The subsidy declined to Rs 1,95,420.51 crore in 2023-24 and Rs 1,77,129.50 crore in 2024-25.

Earlier this month, Union Agriculture Minister Shivraj Singh Chouhan had written to all state chief ministers in this matter.

"Forced tagging of nano-fertilisers or bio-stimulant products, along with conventional fertilisers, should be stopped immediately," Chouhan had said.

He had also urged all states and union territories to take immediate and stringent action against the sale of counterfeit and substandard fertilisers.