Wednesday, July 28, 2010: 10:04:33 AM

Food Processing News

Stricture for fertiliser manufacturers for overpricing farmers

In an effort to minimise burden on the farmers, the Andhra Pradesh government has requested fertiliser manufacturers and dealers not to overcharge farmers

The Andhra Pradesh (AP) government has urged fertiliser manufacturers and dealers not to overcharge farmers on the maximum retail price (MRP) of fertilisers. The move follows a report from farmers, which revealed that manufacturers and dealers were charging farmers extra on the existing MRP of fertilisers to cover transport expenditure. According to farmers, fertiliser manufacturers were transferring the burden of cost to dealers, who in turn were passing it on to farmers.
 
According to G Ramesh, manager logistics of Nagarjuna Fertilisers and Chemicals Limited, a mid-sized fertiliser and chemicals manufacturer in Hyderabad “We are helpless. Farmers hardly come to us directly to buy fertilisers. They prefer to go to the dealers. As manufacturers, we only manufacture the fertilisers. The dealers take it from us and sell it in the market. Therefore, the final pricing is done by the dealers and we do not play any role in it.”
 
Factors propelling high price
 
Increased demand, rise in the price of raw materials in the international market and acute shortage of chemical fertilisers have resulted in the high price of fertilisers in the domestic market. “India has to import sulphuric acid, one of the raw materials needed to manufacture chemical fertilisers, from the international market and therefore has to bear the burden of high price,” added Mr Ramesh. 
 
Talking about the organic fertilisers, Priyesh Panara, owner of Shree Ambika Fertiliser Company, a mid-sized firm dealing in fertiliser manufacturing in Hyderabad, says, “A high quality fertiliser rich in nitrogen that used to cost Rs 8 per kg 2-3 years back now costs Rs 16 per kg as the cost of labour has also climbed up.”
 
Govt initiatives
 
Addressing the situation, the Union minister of Chemicals and Fertilisers M K Alagiri has already deputed government officials to discuss the matter with fertiliser manufacturers and dealers in AP. The government has also asked farmers not to surrender to the dealers and manufacturers if they charge more on MRP. Instead, they have been asked to inform the government about such discrepancies.
 
Shalmoli Kundu

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