Assam Agriculture Department & Fertilizer Dealers at Loggerheads

The meeting between the State Agriculture Department and the All Assam Fertilizer Dealers’ Association (AAFDA) over urea price last night could not strike a happy medium.
Assam Agriculture Department & Fertilizer Dealers at Loggerheads

STAFF REPORTER

GUWAHATI: The meeting between the State Agriculture Department and the All Assam Fertilizer Dealers' Association (AAFDA) over urea price last night could not strike a happy medium. Farmers and tea planters have to bear the brunt as the supply of urea from dealers to retailers came to a grinding halt in the state over the past few days.

The bone of contention is the price of urea – to sell it at the MRP (Maximum Retail Price) or above the MRP? Seventy-five per cent of the total fertilizer demand in the state is urea.

The meeting between the department and the fertilizer dealers' association took place in the presence of Agriculture Minister Atul Bora. When consensus on urea price eluded the meeting, the dealers' association agreed to supply and sell all other fertilizers other than urea.

According to the AAFDA, dealers and retailers have to incur a loss, let alone getting profit, if they sell urea at the MRP. And that led the retailers to stop taking urea from the dealers for the past few days.

Talking to The Sentinel, AAFDA secretary Atanu Prasad Borah said, "A urea bag contains 45 kg. The rake-point (where unloading from train rakes takes place) price of urea is Rs 250.32 per bag, and the MRP is Rs 266.70. It leaves a margin of Rs 16 that goes for labour and transportation cost without leaving any profit for dealers and retailers. We have to bear an extra amount.

"In such a situation, the retailers have stopped taking urea. We have requested the government to find a way out to pay an additional amount for transportation, either by the State Government or the Centre. Dealers and retailers will get a profit if they can sell urea at Rs 300-320 per bag (depending on distance).

"We know farmers and planters are in problems due to the non-supply of urea in this peak season. We are helpless. We submitted a memorandum to the Chief Minister recently on fertilizer prices and other issues. We seek an appointment with the Chief Minister for a detailed discussion on the matter."

Borah further said, "At some places, the farmers know that selling urea at MRP leaves no profit for retailers. They pay an extra amount for transportation costs. The ongoing CID investigation into the distribution of urea led to the arrest of some dealers and retailers for charging prices more than the MRP. It's one of the reasons why the retailers have stopped taking urea. The CID also picked up a few dealers on the charge of selling fertilizer outside their permitted area. It is a baseless charge."

Minister Atul Bora requested the dealers' association at the meeting last night to resume the supply of urea and other fertilizers. He, however, made it clear that retailers should not charge more than the MRP of urea. He said that the government would decide on other issues after examining them.

Talking to The Sentinel, Agriculture Director Anant Lal Gyani said, "Since the Central Government has fixed the MRP of urea, the retailers cannot charge prices more than that. The government cannot allow it. According to information received today, fertilizer distribution started in some districts."

However, AAFDA sources said that there was no supply of urea in the state today.

If the government and the AAFDA continue to be at loggerheads, the farmers and planters will continue to suffer.

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