A fertilizer is a chemical product either mined or manufactured material containing one or more essential plant nutrients that are immediately or potentially available in sufficiently good amounts.

There is no expiry date of chemical fertilizers. However, in case of imported Fertilizers, the container (bag) has. indication regarding month and year of Manufacture/import.

Group Concession Scheme under NPS introduced from 1.402003 Under NPS, all units were classified into six groups based on vintage and the feedstock. For each group, weighted average group price was worked out excluding the outlier (RPS more than +/- 20% of group average). Each unit will get the concession rate based on the group average or the retention price, whichever is lower. Outlier units to get advantage of 50%n of the difference between the RPS and the group average for a period of three years.

The Union Government subsidies the urea manufacturing units for the cost of transportation to facilitate the availability of urea at the same maximum retail price all over the country.

The Retention Price Scheme (RPS) for fertilizer Industry introduced from 1.11.1977 and remained in force till 31.3.2003. Under the RPS Retention Price was fixed for each unit by the Govt. The difference between the Retention Price of Urea and the maximum retail price of urea was paid as subsidy.

The DCF has notified specified grades of Rock Phosphate along with their source of origin, which are considered suitable to production of SSP meeting FCC specifications in terms of water-soluble phosphate content. The Department has also set up Technical Audit and Inspection Cell (TAC), which carries out technical inspection of an SSP unit for its capability to produce SSP meeting FCC norms before induction thereof under the Concession Scheme. The use of notified grades of Rock phosphate and periodical (six monthly) inspections by TAC had been made mandatory for the units for being eligible to claim concession under the Scheme

Primarily, provisions of FCC are directed towards manufacture, and sale of substances that can be used in the soil as fertilizers having the specifications as laid down there under. A manufacturer/dealer in fertilizers has to get himself registered in the State wherein he intends to carry out such activities in accordance with the conditions of FCC. The FCC apart from disallowing ales of sub-standard fertilizers but for in accordance with the procedure laid down there under for disposal of sub-standard fertilizers, it also authorised suspension or cancellation of registration/licence by the appropriate authority in the case of contravention of the FCC provisions.

Concession on decontrolled P&K fertilizers is payable only on the quantities sold for agricultural purposes. Sales can be ascertained or verified from the outlet sources namely dealers/retailers and wholesalers registered under FCO. The States already have administrative field machinery for supervision and implementation of Central and State Schemes, as also ensuring compliance of provisions of FCO. Thus, the States have been given the responsibility of certifying the sales of P&K fertilizers including intimation of quantities. found sub-standard for settlement of claims for payment of concession.

The FCO has laid down fertilizer-wise detailed specifications and no fertilizer, not meeting the said specification, can be sold in the country for agricultural purposes. It also lays down detailed procedure for sampling and analysis of each fertilizer. The Central Fertilizer Quality Control & Training Institute CFQC&TI), Faridabad and its four Regional Fertilizer Control Laboratories (RFCL) under the Department of Agriculture & Co-operation (DAC) take samples of imported fertilizers at the discharge port for analysis thereof. The States also have their own State notified quality control laboratories that analyse samples taken from field (warehouses/dealers/retailers) as well as from the manufacturing plants. Based on the analysis, the labs declare samples as standard or non-standard in terms of specifications laid down in the FCO. The sub-standard quantities are arrived at as per procedure laid down in the FCO and the copies of analysis report are sent to DAC, DOF, the concerned manufacturer/importer etc. No subsidy is payable on quantities declared as sub-standard.

The main objective of the Government is to make available fertilizers at reasonable/affordable prices for agricultural purposes including farmers. This objective is achieved through fixation of statutorily backed uniform MRP for urea and indicative MRP for fertilizers covered under the Concession Scheme on sale of decontrolled P&K fertilizers. Administratively, it is not feasible to disburse subsidy directly to farmers, which would require disbursement at the time of each. purchase and the extent thereof would depend upon the quantity and type of product purchased. Also, in such a scenario, Govt. will have to lift the price control, whether statutory or indicative, as for urea and decontrolled P&K fertilizers, respectively. Then, it would be the market forces that would control the selling price for each product, which could be manufacturer specific as well. This could lead to disparity in actual to be borne by farmers in different regions of the country.