Govt cancels registration of 31 P&K fertiliser-importing companies

The registration has been cancelled as these companies have not imported any P&K fertiliser in the past two years

The Fertiliser Ministry has cancelled the registration of 31 phosphorous and potassium (P&K) fertiliser-importing companies, including Aditya Birla Group firms Hindalco and Indo-Gulf Fertilisers, and PSUs such as MMTC and NFL.

The registration has been cancelled as these companies have not imported any P&K fertiliser in the past two years. Any company that imports fertiliser needs to register itself with the Department of Fertilisers to claim subsidy under the nutrient-based subsidy (NBS) scheme.

"... It has been decided by the competent authority to cancel the registration of the following P&K fertiliser importers under the NBS scheme with immediate effect..," the Ministry said in a communication to the companies on June 1.

Mahindra & Mahindra, Madhu Fertilisers, Khaitan Chemicals and Fertilisers, Rama Phosphates, The Phosphate Company, Greenstar Fertilisers and Shivshakti Bio Technologies are among those whose registration has been scrapped.

The Ministry has also annulled the registration of state-owned enterprises, including Minerals & Metals Trading Corporation (MMTC), Gujarat Narmada Valley Chemicals and Fertilisers (GNFC), Madras Fertilisers (MFL), National Fertilisers (NFL) and National Agriculture Cooperative Marketing Federation (NAFED).

"As per the records in this Department, it has been found that your company has not imported any subsidised fertilisers during the last two years... You are accordingly asked to explain as to why your registration as importer under the NBS should not be cancelled..." the Department of Fertilisers said in the letter dated April 31, 2015.

Meanwhile, the Ministry has clarified that these companies can apply for fresh registration.

"The companies that are willing to import subsidised P&K fertilisers under the NBS scheme are advised to apply afresh for registration once they enter contract with the supplier," the latest letter stated.

Indo-Gulf Fertilisers said it will go for a fresh registration. "We just received the communication. We will again approach the ministry for registration," Indo-Gulf Fertilisers CEO Raj Narayanan told PTI.

Hindalco could not be reached for comments.

India annually imports about 10-11 million tonnes of fertilisers, including 5 MT of diammonium phosphate, 4.5 MT muriate of potash (MoP) and about 1 MT of NPK fertilisers.