Bihar bars subsidised fertiliser dealers from forcing farmers to buy non-subsidised products

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The news

New Delhi. Bihar has joined Maharashtra and Uttar Pradesh in restricting the sale of non-subsidised fertilisers by companies that supply subsidised products such as urea, di-ammonium phosphate (DAP), NPK complexes and muriate of potash, The Economic Times reports. The aim is to stop “tagging”, where dealers or suppliers make a farmer buy a non-subsidised product as a condition for getting subsidised fertiliser. In UP the restriction took effect on January 1, 2026. In a joint letter dated October 9, leading fertiliser companies asked Bihar to review its order, arguing that it could cut farmers’ access to newer nutrients and that Bihar’s low soil organic carbon makes balanced nutrition important. Industry estimates put the margin loss at up to ₹120 crore.

Prelims nuggets

The Fertiliser (Control) Order, 1985 is issued under Section 3 of the Essential Commodities Act, 1955; it regulates fertiliser sale, quality and dealer registration.
Urea is sold at a statutorily notified maximum retail price; the Centre pays makers the gap between cost and that price.
Since 2010, P&K fertilisers such as DAP and MOP get a fixed per-kg subsidy on nutrients (N, P, K, S) under the Nutrient Based Subsidy scheme.