Lucknow: Retail fertilizer dealers across Uttar Pradesh have raised concerns over what they describe as arbitrary business practices by fertilizer companies, claiming that the situation is pushing small agricultural input traders into a severe financial crisis and forcing them to supply fertilizers to farmers at a loss.
The issue was discussed during a meeting between representatives of the Retail Agriculture Traders Welfare Association and Uttar Pradesh Adarsh Vyapar Mandal at the traders’ body’s state office on Ayodhya Road in Lucknow. The association submitted a memorandum seeking support and government intervention to address the challenges faced by retail fertilizer dealers.
Association State President R.K. Kannaujia and State General Secretary Amit Gupta alleged that despite receiving substantial government subsidies, many fertilizer companies are not adhering to prescribed distribution norms. According to them, companies are required to ensure the delivery of urea to retailers’ establishments under the existing system, but in many cases traders are being asked to collect supplies directly from railheads and warehouses.
The association claimed that this practice results in additional expenses related to loading, unloading, transportation, GST, shop rent, electricity, employee wages, and bank interest. These costs, they said, increase the expense of each fertilizer bag by approximately ₹15 to ₹20.
Retail dealers further pointed out that the maximum retail price of urea for farmers is fixed by the government at ₹266.50 per bag, leaving little room to absorb additional costs. They argued that selling above the prescribed price can attract penalties, making it increasingly difficult for dealers to operate profitably.
The association also stated that the government has fixed a dealer margin of ₹354 per tonne for fertilizer dealers, but claimed that many traders have not been receiving the full benefit of this margin in practice. As a result, they said, the financial condition of retail fertilizer dealers has continued to deteriorate.
Supporting the traders’ concerns, Sanjay Gupta, State President of Uttar Pradesh Adarsh Vyapar Mandal, assured the delegation that the organization would stand with retail agricultural traders in their efforts to seek a resolution. He announced that a delegation led by the traders’ body would soon meet the state Agriculture Minister and senior officials of the Agriculture Department to demand stricter enforcement of government regulations, action against irregularities, and implementation of the prescribed dealer margins.
Association leaders warned that if fertilizer companies continue their current practices and the government fails to ensure compliance with existing rules, private fertilizer dealers may be compelled to stop purchasing fertilizer stocks altogether. They said such a development could adversely affect fertilizer availability for farmers, for which, they argued, fertilizer companies would bear responsibility.
The meeting was attended by R.K. Kannaujia, Amit Gupta, State Vice President Desh Deepak Bajpai, State Organization Secretary Avneesh Singh, and other office-bearers of the association.
