Saturday 19 May 2012

Commission Charged by Companies

The commission (dealer’s margin) is Rs. 180/- per MT for private dealers and Rs. 200/- per MT for cooperatives for urea, Rs. 275/- to Rs. 400/- per MT for DAP and Rs. 300/- per MT for MOP. The commission for the urea is same for the last three years, but for Phosphatic & Potassic (P&K) fertilizers it has increased. The dealer’s margin is fixed taking into account the cost involved for last mile delivery of fertilizers upto village level. 

Under Clause 21 of the Fertilizer (Control) Order, 1985 (FCO), it is mandatory to print the Maximum Retail Price (MRP) on each bag of fertilizer and no person is permitted to sell the material above the printed price. The State Governments are adequately empowered under the provisions of the Fertilizer (Control) Order, 1985 to check any black marketing. Any violation of the provisions of the FCO, 1985 attracts penal/administrative action under the Essential Commodities Act 1955/FCO, 1985. State Governments have been advised to prevent such malpractices and ensure that the farmers are provided with proper quality at fixed price. 

This information was given by the Minister of State for Chemicals and Fertilisers, Shri Srikant Kumar Jena in a written reply in the Lok Sabha today. 

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