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Punjab got steady supply of substandard fertilisers: CAG
Man Mohan
Our Roving Editor

WHY THE ROT n The fertiliser quality-testing infrastructure in the country is inadequate n Sample testing capacity is just 25 per cent of what is required n By the time the analysis report reaches the authorities, the particular stock is generally fully sold out

New Delhi, August 22
Thousands of tonnes of various types of substandard fertilisers were sold in Punjab - India’s food bowl - in recent years. By the time “stop sale” orders were issued - in some cases, a year later - these proved meaningless as by that time the dealers had already sold the whole stock. Unsuspecting farmers used those “non-standard” fertilisers, which affected their crops.

This has been revealed by the Comptroller and Auditor General of India (CAG) in its “performance audit” (2011-12) of “fertiliser subsidy” (Department of Fertilisers, Ministry of Chemicals and Fertilisers). The CAG assessed the 11-year period (1998-99 to 2008-09), covering the whole country, but focused on major grain producing states like Punjab.

Punjab has 22 districts with a geographical area of 50.36 lakh hectares. The cropped area is 41.70 lakh hectares (83 per cent), out of which 40.60 lakh hectares (97 per cent) is irrigated. Cropping intensity is 189 per cent, with a consumption of 213 kg fertilisers per hectare.

The CAG noticed that increased consumption of fertilisers was being largely met through increased imports. There was very poor quality control in states and farmers were left at the mercy of the dealers.

“While the CAG is exposing the fertiliser sector’s shortcomings of the recent years,” a Central Government agriculture expert said, “The same story continues with the same mistakes being repeated, and, unfortunately, the farmer suffers as his crop gets affected due to substandard fertilisers, and, ultimately, the nation suffers with less and low quality of grain.”

The fertiliser quality-testing infrastructure in the country was grossly inadequate, the CAG report noticed. The capacity of the existing quality-control laboratories was only 25 per cent of the required capacity for testing samples from all sales outlets twice a year (ie once each for rabi and kharif crops).

Even after a fertiliser sample was found substandard, by the time the analysis report reached the authorities concerned and action was initiated, the balance stock of the fertiliser (pertaining to the substandard sample) had already been sold to unsuspecting farmers.

The countrywide survey of 5,498 farmers showed that 45 per cent of them bought fertilisers at prices higher than the minimum retail price (MRP), while 56 per cent did not know the MRP fixed by the government. About 59 per cent of the farmers faced problems in getting required quantity of fertilisers in a timely manner.

More than 55 per cent farmers wanted fertilisers in small quantity bags.

While 51 per cent farmers indicated that they did not have enough money to buy their full requirement of fertilisers, 76 per cent did not get their field soil tested for scientifically ascertaining the requirement of fertilisers.

In Punjab, four districts and two blocks in each district - Amritsar (Chogawan, Verka), Bathinda (Rampura Phul, Bathinda), Faridkot (Faridkot, Kot Kapura) and Ludhiana (Ludhiana, Khanna) - were selected for audit scrutiny, along with the two fertiliser quality-control laboratories at Faridkot and Ludhiana. Their annual sample testing capacity is 3,500 samples only.

The assessment of requirement of fertilisers was not being received from all Chief Agriculture Officers (CAOs) regularly at the office of the Director of Agriculture. Instead, the Director of Agriculture used the data of previous year’s consumption with “minor adjustments for calculating the requirement of fertilisers for the subsequent year”.

Amritsar and Ludhiana districts’ data (2007-09) revealed that there were wide variations (ranging from - 61 per cent to 93 per cent) in respect of major fertilisers between the projections furnished by the CAOs and that of the Director of Agriculture, which showed that the requirement and consumption figures supplied by the districts were not used for ultimate district-wise projection at the zonal conference.

The actual consumption (supply) of Muriate of Potash (MoP) and Nitrogen, Phosphorus and Potassium (NPK) complex was far below the requirement assessed on the pattern of previous year’s consumption. Out of 150 samples (1.5 per cent) originally declared non-standard, 82 samples were finally proved non-standard during 2006-09.

During 2006-07, out of the 25 cases declared non-standard, subsidy to the tune of 40.15 tonnes of di-ammonium phosphate (DAP) and 8.70 tonnes of ammonium sulphate was recommended for “disallowance” in respect of five cases only. Legal proceedings were started in the remaining 20 cases. In five cases declared non-standard during 2008-09, neither subsidy was disallowed, nor was any legal proceedings initiated.

In respect of eight cases declared “non-standard” during December 2007 and January 2008 in Jalandhar, the “stop sale” orders were issued as late as in July 2009. The stop sale orders were meaningless, as by that time the whole stock lying with the dealers had already been sold.

Due to long period involved in picking up samples, their dispatch to the laboratory for analysis and reporting back the results, the Agriculture Department failed/could not stop the sale of 1250.35 tonnes of non-standard DAP and 234.20 tonnes of mono-ammonium phosphate (MAP) to the farmers.