Ramagundam Fertiliser loses ₹7,954 crore due to tech failures

The Standing Committee on Chemicals and Fertilisers examined the logistics of fertiliser movement, the issue of forced bundling of non-essential products with subsidised fertilisers, and subsidy policies to ensure affordable availability for farmers during peak seasons.

This concerns the Union Department of Fertilisers, State Governments, and farmers who purchase subsidised fertilisers.

• The Committee flagged that non-essential products are sold as prerequisites for subsidised fertilisers (forced bundling) without a regulatory framework, recommending amendments to the Fertilizer (Control) Order, 1985 to prohibit this practice and prescribe penalties.
• The Committee identified a lack of centre-state coordination for last-mile delivery, recommending the creation of a permanent joint command and monitoring cell involving the Departments of Fertilisers, Agriculture, and Railways to oversee buffer stocks and real-time monitoring.
• The Committee noted that fertilisers are moved between distant states despite nearer sources, leading to avoidable costs, and recommended periodic cost-distance analyses and proximity-based optimisation.
• The Committee observed that current subsidies lead to excessive urea use, causing soil and groundwater damage, and recommended a comprehensive review of the pricing and Direct Benefit Transfer (DBT) framework to make it farmer-centric and restore balanced nutrient use.
• The Committee highlighted that new generation urea plants are operating below capacity and DAP capacity utilisation has declined, recommending a review of underperformance causes and performance guarantees for future technology transfers.

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