Faulty system impedes hassle-free urea distribution among the farmers

STAFF REPORTER

GUWAHATI: The State Agriculture Department issued an SOP (Standard Operating Procedure) for the smooth distribution of urea among the farmers. However, lapses in the SOP continue to prevent it from serving its purpose.

According to official sources, the State Government entrusted the Assam State Agriculture Marketing Board (ASAMB) to look into the matter of urea distribution in the state as the nodal agency.

The system for urea distribution prevalent in the state earlier was that the urea manufacturing companies would directly supply urea to the wholesalers, who in turn would supply it to the retailers. However, the Department of Agriculture did away with the wholesalers from the distribution chain of urea through the issuance of an SOP that entrusted the ASAMB to be the nodal agency.

As many as four manufacturing companies—Brahmaputra Valley Fertilizer Corporation Ltd. (BVFCL), IFFCO, IPL (Indian Potassium Ltd.), and Matix Fertilizers and Chemicals Ltd.—supply urea in the state.

In accordance with the SOP, ASAMB issued licences to 4,070 retailers for the distribution of urea. Also following the SOP, the companies issued licences to a large number of retailers for the distribution of urea. The Agriculture Department is not properly monitoring whether the retailers who got licences from the companies strictly sell urea in their respective sale areas and maintain their stocks. Such lapses have allowed the same person to hold retail licences in two to three districts.

According to sources, the companies provide only 40 percent of the urea they bring to Assam to the ASAMB and hold back the remaining 60 percent for their retailers. It has created an imbalance in the urea distribution system, and it has stemmed from the lapses in the SOP. In May, the monthly estimated urea requirement in the state is around 45,330 MT, and the ASAMB will get only around 19,370 MT.

Another major problem that cropped up in March this year is that the ASAMB has not been able to lift urea coming from the BVFCL from the railway yard. Earlier, BVFCL used to bear the cost of the handling agents who loaded the commodities from the railway racks onto ASAMB trucks. However, of late, the BVFCL has refused to bear the expense of handling agents. The handling agents charge Rs. 10 per bag. The ASAMB wrote letters to the Agriculture Department for the handling agents’ charge but has not received any reply as yet. Even though the retailers are ready to pay the handling agents’ charge, the ASAMB is not giving the nod, as that department has not formulated any rule on that.

On April 2, 2023, the department wrote letters to all the fertilizer companies to mandatorily drop off the consignment at the retailers’ sales points or godowns. This rule needs to be followed.

According to sources, if a single agency handles all retailers, there is a fair chance of proper monitoring of the sales and maintenance of stocks of urea.

According to an ASAMB source, they monitor the sales through POS (Point of Sale) machines with Aadhaar links of the farmers, confinement in their respective sale areas, etc., of the retailers under their control.

The responsibility of monitoring the activities of the retailers under the control of the fertilizer companies rests with the State Agriculture Department. As and when asked about this crucial issue, top agriculture officials opt to beat around the bush instead of giving a clear-cut reply. It is the bounden responsibility of the department to plug the holes in its system of urea distribution and streamline it.

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