Bhubaneswar: Taking advantage of the West Asia conflict, fertilizer dealers across Odisha have begun selling large quantities of urea at unauthorized rates within their respective areas. Despite the growing severity of the situation, there is a perception that District Magistrates are not taking the matter seriously or responding with the necessary urgency.
This lack of strict local oversight has exacerbated the crisis, as India’s reliance on West Asia for 40% of its fertilizer imports and 86% of its liquefied natural gas means that any maritime disruption in the Strait of Hormuz or the Red Sea creates an immediate opening for exploitation.
While domestic production capacity has dropped due to gas supply cuts of up to 40%, the resulting scarcity is being leveraged by local distributors to maximize profits at the expense of the farming community.
This atmosphere of scarcity has fueled a rise in black market activities throughout the state. Although the government asserts that buffer stocks remain sufficient, the unpredictability of global shipments has triggered panic buying and hoarding.
In districts such as Ganjam, Gajapati, Sambalpur, Dhenkanal, and Deogarh, farmers have reported that urea is being diverted from official channels and sold at prices well above the subsidized Maximum Retail Price.
These unauthorized markups place a heavy financial burden on small-scale farmers who are desperate to secure necessary nutrients for their crops.
Although the government officially fixed the price of urea at 266.50 per 45 kg bag, farmers in blocks like Sohela and Bhatli have reported being forced to pay over 500 per bag.
In Bargarh, hundreds of cultivators recently petitioned the Chief District Agriculture Officer, alleging that licensed wholesalers are deliberately withholding stocks to sell in the open market at inflated premiums.
Similar distress has been reported in Sundargarh and Rayagada, where long queues at cooperative societies often result in no supply, while private dealers appear to have ample stock at unregulated prices.
In response to the mounting pressure, the state government has intensified its review of the supply chain. Agriculture Secretary Shri Sachin Ramachandra Jadhav has directed District Magistrates to strictly enforce the Fertilizer Control Order and the Essential Commodities Act to curb these irregularities.
Shri Jadhav has issued strict instructions to District Magistrates to look into the interest of the farmers, who are feeding the State.
In recent enforcement drives, the state has already closed 30 fertilizer shops and suspended the licenses of 62 dealers found engaging in malpractice.
District and block-level teams comprising agriculture, revenue, and police officials have been tasked with conducting regular raids on godowns. Despite the central government’s assurance that national buffer stocks are 22% higher than last year, the localized supply gap in Odisha remains a critical threat to the financial viability of the current harvest season.