The Government has taken following measures to keep the prices of P&K fertilisers at reasonable level:
Under the Fertilizer Control Order (FCO), the fertiliser companies are required to print the Maximum Retail Price (MRP) on each bag of fertiliser. No fertiliser company or dealer is supposed to sell or offer for sale any fertiliser at a price exceeding printed MRP. Violation of this is punishable under Essential Commodities Act. The State Governments are adequately empowered to take preventive/punitive actions for violation of any of the provisions of Fertilizer Control Order (FCO) 1985 under Essential Commodities Act 1955. Overcharging is violation of EC Act.
It has been made mandatory for the fertiliser companies to submit alongwith their subsidy claims, the cost data of their fertiliser products from 2012-13 onwards in prescribed format on six monthly basis. The Department of Fertilizers has also appointed Cost Accountants/ Firms to scrutinise the said cost data.
It has also been stipulated in the provisions that in cases, where after scrutiny, unreasonableness of MRP is established or where there is no correlation between the cost of production or acquisition and the MRP printed on the bags, the subsidy would be restricted or denied even if the product is otherwise eligible for subsidy under NBS Scheme. In proven case of abuse of subsidy mechanism, the Department of Fertilizers, on the recommendation of Inter-Ministerial Committee may exclude any grade/grades of fertilisers of a particular company or the fertiliser company itself from the NBS Scheme.
To ensure availability of fertilisers in adequate quantity to the farmers, following steps are taken by the government:
The movement of all major subsidised fertilisers is being monitored throughout the country by an on-line web based monitoring system (www.urvarak.co.in) also called as Fertilizer Monitoring System (FMS);
The State Governments are regularly advised to coordinate with manufacturers and importers of fertilisers for streamlining the supplies through timely placement of indents for railway rakes through their state institutional agencies like Marked etc.
Regular Weekly Video Conference is conducted jointly by Department of Agriculture & Cooperation (DAC), Department of Fertilizers (DoF), and Ministry of Railways with State Agriculture Officials and corrective actions are taken to dispatch fertiliser as indicated by the State Governments.
The gap in the demand and domestic production of fertiliser is met through imports.