Govt for reformation of registration system for fertiliser suppliers; seeks suggestions from FISME
Updated: Oct 01, 2015 01:38:32pm
New Delhi, Oct 1 (KNN) The agriculture ministry is considering reforming the registration system for fertiliser suppliers and has asked for suggestions from the Federation of Indian Small, Micro and Medium Enterprises (FISME).
Sanjeev Kumar Balyan, minister of state for agriculture and farmers welfare, discussed this matter with a delegation of fertilisers from FISME which met him in his office recently. The ministry’s move is expected to bring a big relief to fertiliser manufacturers who have to go through a complicated registration system to distribute their fertilisers.
Balyan also told the visiting delegation that his ministry has launched a fertiliser quality control system portal to bring transparency in sample testing process and the same would be made functional soon.
During interaction with the minister, the delegation which was led by Neeraj Kedia, a past FISME president, brought to Balyan’s notice that the procedure for registration of manufactures for fertiliser sales remains complicated even as the Modi government is focused on improving ease of doing business to attract investors in a bid to ensure success of the ‘Make in India’ programme.
At present, fertiliser manufacturers are required to submit a Memorandum of Intimation to the state governments, under the Fertiliser Control Order, wherever they want to market their products. This means a unit must obtain licence for every activity and for every state separately. Such permissions are granted for limited period and need to be renewed after every 2-3 year. This system is simply stifling for fertiliser suppliers. Moreover, the costs of the registration process also make fertilisers costlier.
Kedia requested the minister to use his good offices to ensure that only single point filing of ‘Memorandum of Intimation’ with 10-year validity is notified.
Kedia brought to the notice of the minister how NBS subsidy is garnered by large manufacturers, leaving small players at the receiving end.
“As fortified NPK is made only by big companies, the subsidy also goes to them and small manufacturers do not get any subsidy, which not only creates a dual price of same fertiliser in the marketplace, but also distorts the market completely -- there are no takers for separately sold Zinc fertilisers which are priced higher, and at the same time the supply of fortified NPK is also restricted by big players. To overcome this above anomaly we request complete withdrawal of subsidy on Zinc based nutrients or extension of the same subsidy to all Zinc based fertilisers – whether sold separately or mixed with other fertilisers,” Kedia said.
The FISME delegation also raised the issue how fertiliser subsidy provided by the agriculture ministry to farmers under the NFSM, which covers just 20-25% of total demand, is distorting the market and putting those outside the scheme at a disadvantage.
It creates expectations in the farmers for subsidised fertilisers which may never come during the season due to insufficient allocation of subsidies. Further, it also encourages unscrupulous trading in the market to grab whatever subsidy available.
As a consequence of unscrupulous trading, many scrupulous fertiliser traders had to shut shop in recent years.
Past FISME president Kedia requested Balyan’s intervention to ensure that subsidisation of fertilisers under NFSM is completely done away with or if that is not possible, then a way be found for direct cash transfer to eligible farmers.
Balyan promised to look into the issues raised by the delegation. Arun Kapur, president, Micronutrient Manufacturer Association, Abhay Kumar, Vinod Goyal and Debasis Bandopadhyay were part of the delegation.
Following the meeting a committee has been constituted in FISME, under the Chairmanship of V.K. Agarwal, to study the present registration process under FCO and suggest feasible solution to the Government. (KNN Bureau)
Sanjeev Kumar Balyan, minister of state for agriculture and farmers welfare, discussed this matter with a delegation of fertilisers from FISME which met him in his office recently. The ministry’s move is expected to bring a big relief to fertiliser manufacturers who have to go through a complicated registration system to distribute their fertilisers.
Balyan also told the visiting delegation that his ministry has launched a fertiliser quality control system portal to bring transparency in sample testing process and the same would be made functional soon.
During interaction with the minister, the delegation which was led by Neeraj Kedia, a past FISME president, brought to Balyan’s notice that the procedure for registration of manufactures for fertiliser sales remains complicated even as the Modi government is focused on improving ease of doing business to attract investors in a bid to ensure success of the ‘Make in India’ programme.
At present, fertiliser manufacturers are required to submit a Memorandum of Intimation to the state governments, under the Fertiliser Control Order, wherever they want to market their products. This means a unit must obtain licence for every activity and for every state separately. Such permissions are granted for limited period and need to be renewed after every 2-3 year. This system is simply stifling for fertiliser suppliers. Moreover, the costs of the registration process also make fertilisers costlier.
Kedia requested the minister to use his good offices to ensure that only single point filing of ‘Memorandum of Intimation’ with 10-year validity is notified.
Kedia brought to the notice of the minister how NBS subsidy is garnered by large manufacturers, leaving small players at the receiving end.
“As fortified NPK is made only by big companies, the subsidy also goes to them and small manufacturers do not get any subsidy, which not only creates a dual price of same fertiliser in the marketplace, but also distorts the market completely -- there are no takers for separately sold Zinc fertilisers which are priced higher, and at the same time the supply of fortified NPK is also restricted by big players. To overcome this above anomaly we request complete withdrawal of subsidy on Zinc based nutrients or extension of the same subsidy to all Zinc based fertilisers – whether sold separately or mixed with other fertilisers,” Kedia said.
The FISME delegation also raised the issue how fertiliser subsidy provided by the agriculture ministry to farmers under the NFSM, which covers just 20-25% of total demand, is distorting the market and putting those outside the scheme at a disadvantage.
It creates expectations in the farmers for subsidised fertilisers which may never come during the season due to insufficient allocation of subsidies. Further, it also encourages unscrupulous trading in the market to grab whatever subsidy available.
As a consequence of unscrupulous trading, many scrupulous fertiliser traders had to shut shop in recent years.
Past FISME president Kedia requested Balyan’s intervention to ensure that subsidisation of fertilisers under NFSM is completely done away with or if that is not possible, then a way be found for direct cash transfer to eligible farmers.
Balyan promised to look into the issues raised by the delegation. Arun Kapur, president, Micronutrient Manufacturer Association, Abhay Kumar, Vinod Goyal and Debasis Bandopadhyay were part of the delegation.
Following the meeting a committee has been constituted in FISME, under the Chairmanship of V.K. Agarwal, to study the present registration process under FCO and suggest feasible solution to the Government. (KNN Bureau)
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