GUWAHATI: A fertilizer scam has been unearthed in Assam prompting the state government to cancel the licences of over 1,200 retailers for allegedly manipulating the sale of fertilizers to farmers. Assam is one of the biggest rice producing stateswhich is highly dependent on chemical fertilizers.
Assam has received around 5.16 lakh metric ton of fertilizers since April 2021, estimated to be worth Rs 737 crore. After detecting anomalies in various districts in the system in the last 10 months, the government has taken stern action against the erring retailers and wholesalers by suspending 1,272 retail licences and three wholesale licences. Show-cause notices have been served to four wholesalers. A dealer in Barpeta district has already been sent to judicial custody.
“In the last 10 months, huge transactions were done by many retailers through different modes, either through cash or other unauthorized modes. But as per norms, the sale of fertilizers must be done through Point of Sale (PoS) devices. Through cash transactions, they manipulate the figures of fertilizers sold and the authorized rate,” a source in the state agriculture department said.
Agriculture minister Atul Bora’s office informed TOI that recently in Cachar district, four trucks were seized and four persons were arrested for failure to produce authentic documents regarding the source of the fertilizer. In Cachar itself, seven trucks were seized for failing to produce valid documents. For unauthorized supply of fertilizers, three more cases have been registered, two in Hojai district and one in Karbi Anglong district. Also, a rake of urea from the manufacturing unit of the Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) has been captured as the urea consignment was lifted beyond the permitted quantities.
Fertilizer reforms have been undertaken in the state in order to streamline the chemical fertilizer distribution system. “Artificial scarcity and exorbitant price of fertilizers has compelled the agriculture department to initiate an enquiry into the functionaries involved in the distribution system. As such, action has been taken against a number of retailers and wholesalers for violation of rules,” clarified Bora.
He said that in order to discourage monopoly amongst a few select traders, a special SOP has been framed under the directive of chief minister Himanta Biswa Sarma. “The display of price list and daily stock position with strict adherence to the area of operation is mandatory,” the minister added.
In order to check the price and rational distribution of fertilizers, the number of rake points has been doubled to 14 since July 2021. Strict compliance needs to be followed by the companies as per the Release Order Module of the government of India, wherein fertilizers received by the companies have to be distributed to wholesalers from the rake point upto the godown.
A total 36 rake points have been targeted out of which mapping for another 20 have already been done. Sources in the agriculture department said CM Sarma has also instructed that the IFFCO retailer model of fertilizer distribution, which is being implemented in Gujarat and Madhya Pradesh, be studied and to develop the state’s own fertilizer policy.
Assam has received around 5.16 lakh metric ton of fertilizers since April 2021, estimated to be worth Rs 737 crore. After detecting anomalies in various districts in the system in the last 10 months, the government has taken stern action against the erring retailers and wholesalers by suspending 1,272 retail licences and three wholesale licences. Show-cause notices have been served to four wholesalers. A dealer in Barpeta district has already been sent to judicial custody.
“In the last 10 months, huge transactions were done by many retailers through different modes, either through cash or other unauthorized modes. But as per norms, the sale of fertilizers must be done through Point of Sale (PoS) devices. Through cash transactions, they manipulate the figures of fertilizers sold and the authorized rate,” a source in the state agriculture department said.
Agriculture minister Atul Bora’s office informed TOI that recently in Cachar district, four trucks were seized and four persons were arrested for failure to produce authentic documents regarding the source of the fertilizer. In Cachar itself, seven trucks were seized for failing to produce valid documents. For unauthorized supply of fertilizers, three more cases have been registered, two in Hojai district and one in Karbi Anglong district. Also, a rake of urea from the manufacturing unit of the Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) has been captured as the urea consignment was lifted beyond the permitted quantities.
Fertilizer reforms have been undertaken in the state in order to streamline the chemical fertilizer distribution system. “Artificial scarcity and exorbitant price of fertilizers has compelled the agriculture department to initiate an enquiry into the functionaries involved in the distribution system. As such, action has been taken against a number of retailers and wholesalers for violation of rules,” clarified Bora.
He said that in order to discourage monopoly amongst a few select traders, a special SOP has been framed under the directive of chief minister Himanta Biswa Sarma. “The display of price list and daily stock position with strict adherence to the area of operation is mandatory,” the minister added.
In order to check the price and rational distribution of fertilizers, the number of rake points has been doubled to 14 since July 2021. Strict compliance needs to be followed by the companies as per the Release Order Module of the government of India, wherein fertilizers received by the companies have to be distributed to wholesalers from the rake point upto the godown.
A total 36 rake points have been targeted out of which mapping for another 20 have already been done. Sources in the agriculture department said CM Sarma has also instructed that the IFFCO retailer model of fertilizer distribution, which is being implemented in Gujarat and Madhya Pradesh, be studied and to develop the state’s own fertilizer policy.