The Centre has proposed a law that empowers it to fix the maximum selling price of fertilisers — price ceiling — and control its quality as well as distribution.
The Department of Fertilisers has sought comments from all stakeholders on the draft Integrated Plant Nutrition Management Bill, 2022, by February 26. It also seeks to establish an Integrated Plant Nutrition Management Authority of India.
“It is hereby declared that it is expedient in the public interest that the Union should take under its control the distribution, price and quality of standards of fertilisers,” said the draft document posted on the department's website.
The proposed law is aimed at promoting the development and sustainable use of balanced fertilisers, including bio-fertilisers, bio-stimulates, nano-fertilisers and organic fertilisers.
It seeks to simplify the process for the manufacture, production, distribution and price management of fertilisers in India, which will, in turn, improve the ease of doing business.
“The Central Government may, with a view to regulating the equitable distribution of fertilisers and making fertilisers available at fair prices, by notification in the Official Gazette, fix the maximum prices or rates at which any fertiliser may be sold by a dealer, manufacturer, importer or a fertiliser marketing entity,” the draft stated.
It also aims to empower the Centre to fix different prices or rates for fertilisers having different periods of storage or for different areas or for different classes of consumers.
“No dealer, manufacturer importer or fertiliser marketing entity shall sell or offer for sale any fertiliser at a price exceeding the maximum price,” the draft said. It further said that no person can manufacture, sell, import for sale, or market without obtaining the appropriate registration.
According to the document, the central government can also prescribe the manner in which fertilisers are to be moved from one state to another. The budget has slashed the fertiliser subsidy to Rs 1.05 lakh crore in 2022-2023 from Rs 1.40 lakh crore in the current fiscal.
