Fertilizer companies are required to print the MRP and available subsidy on each bag of P&K fertilizers.  

The Minister of State for Chemicals & Fertilizers  Shri Hansraj Gangaram Ahir informed the Lok Sabha  today in reply to an Unstarred Question  that  the existing mechanism put in place to monitor the prices of P&K fertilizers is as under:-

i.                    Sale of fertilizers above the printed  price is punishable under the EC Act.

ii.                  (a) It has been made mandatory for the fertilizer companies to submit alongwith their subsidy claims, the cost data of their fertilizer products from 2012-13 onwards in prescribed format on six monthly basis . The Department has also appointed Cost Accountants/ Firms to scrutinize the said cost data to ensure that the prices fixed by the fertilizer companies are reasonable.

(b) It has also been stipulated in the provisions that in cases, where after scrutiny, unreasonableness of MRP is established or where there is no correlation between the cost of production or acquisition and the MRP printed on the bags, the subsidy would be restricted or denied even if the product is otherwise eligible for subsidy under NBS Scheme. In proven case of abuse of subsidy mechanism, the Department of Fertilizers, on the recommendation of Inter-Ministerial Committee may exclude any grade/grades of fertilizers of a particular company or the fertilizer company itself from the NBS Scheme. This punitive provision checks overpricing of Fertilizers.                                                                                                                                          

        Department of Fertilizers allocates sufficient /adequate quantities of fertilizers to States by issuing monthly supply plan and continuously monitors the availability of fertilizers. Details of availability of all chemicals fertilizers ( Urea, DAP, MOP & NPK) for the last three years 2013-14 to 2015-16 ( April, 2015 to February, 2016 ) are given below:-

( Figure in LMT)

It can be seen from the above table that availability of all chemical fertilizers against sales is sufficient/adequate and there is no shortage of fertilizers.