The government has strengthened regulatory measures to ensure fair pricing and uninterrupted distribution of Phosphatic and Potassic (P&K) fertilizers, with the objective of safeguarding farmers’ interests and preventing market distortions. These steps reinforce the government’s commitment to maintaining affordability and availability across regions.
Profit Margins Capped to Prevent Overpricing
Under the existing guidelines, the government clarified that it will treat any profit earned beyond the prescribed limits as unreasonable and recover it from the concerned company. The government considers a profit margin of up to 8% for importers, 10% for manufacturers, and 12% for integrated manufacturers, calculated over the production cost of the final P&K product, to be reasonable.”
Mandatory Price Disclosure on Fertilizer Bags
To enhance transparency at the retail level, the government has mandated that every fertilizer bag must clearly display the Maximum Retail Price (MRP) along with the applicable subsidy per bag and per kilogram. Charging farmers more than the printed MRP constitutes an offence and attracts penal action under the Essential Commodities Act, 1955, the government said in a statement.
Real-Time Monitoring Through iFMS
At the same time, the government continues to closely monitor the production, movement, and import of fertilizers through the Integrated Fertilizer Monitoring System (iFMS). This web-based platform enables real-time tracking of fertilizer distribution, imports, and domestic manufacturing activities, ensuring greater accountability across the supply chain.
Suppliers Responsible for Last-Mile Delivery
In addition, all manufacturers, marketers, and importers of P&K fertilizers—including Single Super Phosphate (SSP) producers—must ensure delivery of fertilizers up to the retail point on a Freight on Road (F.O.R.) basis. This places the responsibility for transportation squarely on suppliers, thereby reducing delays and regional imbalances. As reported by chinimandi.com, to further strengthen coordination, the Department of Fertilizers (DoF) allocates fertilizer quantities based on assessed demand through a monthly supply plan and continuously tracks availability across states using the iFMS portal.
