Assam: Complex web of urea distribution leaves Dhubri farmers struggling

Four years after the Government of Assam abolished private wholesalers from the urea supply chain, the restructured distribution system continues to face serious challenges, with farmers and small retailers in Dhubri bearing the brunt.

 

In 2022, the state government shifted urea management to the Assam State Agricultural Marketing Board through a Standard Operating Procedure (SOP) aimed at ensuring transparency and protecting farmers’ interests. Under the revised framework, major fertilizer suppliers such as IFFCO, Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Matrix Fertilizers and Chemicals Limited and Hindustan Urvarak & Rasayan Limited (HURL) supply urea either to the State Marketing Board or directly to designated retailers.

 

However, concerns have emerged over disproportionate allocations and limited district-level oversight. The District Agriculture Department has minimal involvement in direct retailer distribution, a gap critics say reduces monitoring at the grassroots level.

 

Official data indicates that Dhubri district, which has over 400 retailers, consistently receives higher urea allocations than several agriculturally more advanced districts. Nearly 20 per cent of retailers in the district reportedly deal exclusively in urea, despite regulations requiring licensed agri-input shops to maintain a balanced stock of seeds, fertilizers and pesticides.

 

Retailers are often accused of selling urea above the government-fixed price. However, many shopkeepers argue that company-level practices contribute significantly to pricing irregularities. According to local distributors, companies rarely supply urea independently and instead insist on bundling it with additional products such as Nano Urea, bio-fertilizers and secondary nutrients.

 

Retailers claim that without purchasing these “supported” products, they are denied their urea quota. This alleged “forced bundling” increases operational costs, prompting some traders to pass on the additional burden to farmers.

 

While the Marketing Board’s distribution mechanism is considered relatively neutral, parallel direct-to-retailer supplies by certain companies are said to disadvantage smaller shopkeepers.

 

As periodic shortages continue, stakeholders are calling on the Government of Assam to tighten regulation of company-level stock allocation and ensure that urea supply is not made conditional on the purchase of other products. Without corrective measures, observers warn that the reforms introduced in 2022 risk being undermined, leaving farmers to shoulder the consequences.