Published on: February 20, 2026

FERTILISER SECTOR REGULATION

FERTILISER SECTOR REGULATION

NEWS: Uttar Pradesh Govt.’s recent ban on the sale of non-subsidised speciality nutrients by authorised fertiliser dealers àdebate about India’s fertiliser regulatory regime.

ABOUT

  • The Central Government exercisesà absolute control by legally fixing the pan-India MRP of urea at ₹242 per 45 kg bag
  • Nutrient-Based Subsidy (NBS)à the government enforces “Reasonableness of MRP” guidelines on Phosphatic and Potassic (P&K) fertilisers to =ensure affordability.
  • The Fertiliser Movement Control Order 1973à Empowers the Department of Fertilisers (DoF) to determine rail “rake” destinations and state-wise equitable supply plans.
  • The Pradhan Mantri Bhartiya Jan Urvarak Pariyojana (PMBJP) àmandates a single brand name, “Bharat”, for all subsidised fertilisers.
  • The Direct Benefit Transfer (DBT) systemà Releases 100% subsidy to companies only after Aadhaar-authenticated sales through Point of Sale (PoS) devices.

Arguments in Favour of Fertiliser Controls

  • Controls inflation: Fixed urea prices protect farmers from global price fluctuations in raw materials
  • Government allocation systemàEnsures fertilisers reach remote and less profitable areas.
  • Protects small farmersà Rules prevent forced bundling of urea with costly, non-subsidised fertilisers.
  • “Bharat” branding and central monitoring reduce fake or low-quality fertilisers in the market.

Arguments Against Fertiliser Controls

  • Heavy subsidy on ureaà Distorted the ideal N:P:K ratio (11:4:1 vs ideal 4:2:1) à soil degradation
  • Mandatory “Bharat” branding removes product differentiation, reducing companies’ motivation to invest in farmer support services.
  • Sudden regulatory changes create unpredictability and discourage private sector investment.
  • Delayed subsidy reimbursements block working capital, affecting liquidity and business sustainability.

Way Forward

  • Promote nano & green fertilisers: Use new eco-friendly fertilisers to reduce imports and costs.
  • Give subsidy directly to farmers
  • Reduce restrictions on special fertilisers: Allow companies to sell advanced fertilisers easily to support modern farming.