COMPLIANCE APPLICABLE ON FERTILISERS

A. Authorisation or Registration of Dealers

1.1 The authorisation letter and certificate of registration are required to be obtained for selling or carrying on the business of selling fertilisers under the Fertilisers Control Order, as discussed hereunder:

• (a) Authorisation of dealers: For the purpose of selling or carrying on the business of selling of fertiliser, every person including manufacturer, importer, pool handling agency, wholesaler and a retail dealer are required to obtain the authorisation letter from the Notified Authority, by filing the Memorandum of Intimation thereto along with the requisite fee and certificate of source. However, the applicant is required to complete a certificate course of fifteen (15) days from any State Agriculture University or Krishi Vigyan Kendras or National Institute of Agricultural Extension Management (MANAGE) or National Institute of Rural Development and Panchayati Raj (NIDPR) or Fertiliser Association of India or any other approved Government Institute, unless the applicant possesses Bachelor of Science in Agriculture or Chemistry or Diploma in Agriculture Science from a recognised University or Institute or equivalent course having one of the subject on fertiliser or Agri-inputs, as notified by the State Government. The authorisation letter remains valid for a period of five (5) years.

• (b) Registration of Industrial Dealer: Every person intending to sell or offer to sell or carrying on the business of selling the fertilisers for industrial purposes i.e., for uses other than the fertilisation of soil and increasing productivity of crops, is required to obtain certificate of registration from the Controller, by making an application along with requisite fee and certificate of source. Pertinently, the Controller shall grant the certificate within a period of thirty (30) days from the date of receipt of application, subject to the conditions specified under Clause 9 of the Fertiliser Control Order. The certificate of registration is valid for a period of five (5) years. Any person other than state government, manufacturer, importer or pool handling agency, holding the certificate of registration for industrial dealer, shall not carry on the business of selling the fertilisers for agricultural use. Further, the state government, manufacturer, importer and pool handling agency shall not carry on the business of selling the fertilisers for industrial and agricultural purposes in the same premises.

B. Certificate of Manufacture

2.1 The Fertiliser Control Order stipulates that every person shall obtain the certificate of manufacture to carry on the business of preparing any mixture of fertilisers and special mixture of fertiliser. However, the applicant is required to comply with the standards provided thereunder and possess the qualification as prescribed in accordance with Clause 14 of the Fertiliser Control Order. The certificate of manufacture is required to be obtained as discussed hereunder:

• (a) For preparation of mixture of fertiliser: The application for certificate of manufacture shall be filed before the registering authority in Form D along with the requisite fee. If the registering authority is satisfied with the application, it is required to issue the certificate of manufacture within the period of forty-five (45) days from the date of receipt of the application. The said certificate of manufacture for preparation of mixture of fertilisers remains valid for a period of three (3) years from its date of issuance.

• (b) For preparation of special mixture of fertiliser: The application for certificate of manufacture for preparation of special mixture of fertiliser shall be filed before the registering authority, in Form D along with fee and attested copy of requisition of purchaser. It is mandatory for such applicant to hold a valid certificate of manufacture of any mixture of fertilisers. The certificate of manufacture for preparation of special mixture of fertilisers remains valid for a period of six (6) months from its date of issuance, extendable for a total period of twelve (12) months.

C. Restrictions on manufacture, sale, etc. of fertilisers

3.1 The fertilisers, mixtures of fertilisers and special mixtures of fertilisers which do not conform to the standards prescribed under the Fertilisers Control Order, shall not be manufactured for sale, sold, offered for sale, stocked or exhibited for sale or distributed.

3.2 No person shall sell, offer for sale, stock or exhibit for sale or distribute:

• (a) Any fertiliser with a container which is not packed or marked in accordance with the standards prescribed in the Fertiliser Control Order and / or fertiliser whose label bears false claims, name of a fictious or non-existing company or firm;

• (b) Any imitation or substitute for another fertiliser under the name of which it is sold;

• (c) Adulterated fertilisers or substance which is not a fertiliser as a fertiliser;

• (d) Any fertiliser without exhibiting the minimum guaranteed percentage by weight of plant nutrient.

3.3 The Central Government may from time to time prescribe separate specifications in respect of imported fertilisers and provisional fertilisers, which remains valid for a period of three years.

3.4 Customised Fertilisers: The Central Government may from time to time prescribe general specifications for customised fertilisers which remains valid for a period of up to four years. The prior permission is necessary for manufacturing any particular grade of customised fertiliser. The application for the above permission shall be made in Form Q to the Controller. The said permission remains valid for a period of three years. Further, the permission for manufacture and sale of Customised Fertiliser is granted to only such Fertiliser Companies whose annual production of fertilisers other than CFs is 5.00 lakh metric tonne. Such manufacturers can set up manufacturing units of CF either on their own or through subsidiaries or joint venture through a minimum stake of 51% in such joint ventures. Further, it is important that the grades of customised fertilisers shall be based on soil fertility data maintained by the Ministry of Agriculture and Farmers Welfare or State Government.

3.5 Bio Stimulant: No person shall manufacture or import any bio stimulant which has not been notified by the Central Government under the Fertilisers Control Order (Schedule VI). The Central Government shall specify the specification of bio stimulants in accordance with Clause 20-C of the Fertilisers Control Order. Further, to include any new bio stimulants under the Fertilisers Control Order, the manufacturer or importer is required to submit an application before the Control in Form G and in accordance with Clause 20-C. It is pertinent to note that the bio stimulant shall not contain any pesticide beyond the permissible limit of 1 ppm and any heavy metal beyond the maximum limit tabulated below:

3.6 Nano Fertilisers: All the nano fertilisers shall be manufactured in conformity to the standard set out by the Central Government and with the approval of the Controller. The specifications for nano fertilisers shall be notified by the Central Government which remains valid for a period up to three years. For the purpose of obtaining the approval of the Controller shall submit the application in Form G-4 along with a report of the State Agriculture University or of the Indian Council of Agricultural Research on multi-locational and multi-crop bio efficacy trial of minimum one season and also a report from any of the NABL accredited laboratories on biosafety, biotoxicity and quality trial as per the guidelines issued by the Department of Bio-Technology. The manufacturer shall make nano-fertilisers available to the farmers in accordance with Clause 20-D of the Fertilisers Control Order.

D. Packing and Labelling Requirements

4.1 The manufacturer, importer and pool handling agencies shall comply with the following packing and marking requirements for containers of fertilisers, bio-fertilisers, organic fertiliser, non-edible de-oiled cake fertiliser or bio stimulant as prescribed under the Insecticides Act read with Insecticides (Price, Stock Display and Submission of Reports) Order, 1986:

• (a) The fertiliser’ container shall be superscribed with words “Fertiliser” and shall bear only such particulars as may be specified by Controller.

• (b) The containers of bio-fertiliser/ organic fertiliser/ bio stimulant shall be packed with words “bio-fertiliser”/ “organic fertiliser” or “Non-Edible De-Oiled Cake Fertilizer”/ “Bio stimulant” superscribed on them and shall bear only such particulars as may be specified by Controller.

• (c) The container/ bag shall be packed/ stitched and sealed/ tag sealed such that they cannot be tampered without breaking the seal. However, if the bag is stitched in such a manner that it cannot be tampered with without breaking the seal, the tag sealed shall not be necessary.

• (d) The above fertilisers shall be packed in the manner as specified by the Central Government.

E. Compliance under FMC Order

5.1 The fertilisers can be taken to any place outside a state in accordance with the FMC Order under the authorisation issued by the Government of India in the Ministry of Chemicals and Fertilisers or the Director of Agriculture of a state government or any officer authorised by the state government. In addition to the above, it is pertinent to take note of the following:

• (a) Bringing in the physical and granulated mixtures of fertilizers in a state from another, is subjected to the authorisation allowing entry of the same issued by the Director of Agriculture or such other officer as authorised by the state government.

• (b) The Government of India may order any manufacturer, importer or supplier to move and sell fertilisers produced or imported by him in the manner that it may specify.

• (c) The distribution and movement of fertilisers shall continue to be monitored through online web based “Fertilisers Monitoring System.”

F. Import and Export Requirements

6.1 The import and export fertilisers classifiable under Chapter 31 of the First Schedule of the Customs Tariff Act, 1975 are subject to import and export policy prescribed under Chapter 31 of the Import Policy (Schedule I to ITC(HS)) and Export Policy (Schedule II to ITC(HS)).

• (a) Import Policy: The goods falling under Chapter 31 can be freely imported except the following:

• (b) Export Policy: The export of goods falling under Chapter 31 may be subjected to the following policy conditions 1 and 2 of the Chapter:

  • Policy Condition 1: Export of the item produced from animal by-products is allowed to be exported to European Union subject to the issuance of “shipment clearance certificate” consignment wise by the CAPEXIL and submission of “health certificate” consignment wise to the buyer, issued jointly by CAPEXIL and Regional Animal Quarantine Officer, Department of Animal Husbandry, Dairying and Fisheries, Ministry of Agriculture and Farmers Welfare, Government of India.

  • Policy Condition 2: The Export of NP(16-20-0), NP(20-20-0), NP(28-28-0) and NP(23-23-0) is free provided the manufacturers of NP and NPK, as listed in Main Notes 1 at List C (refer to the export policy of Chapter 31), shall export their own manufactured NP and NPK subject to intimation to department of fertiliser about the quantity of export along with a self-declaration and certificate issued by statutory auditors stating that no concession/ subsidy has been claimed. Such certificate shall be produced before the customs at the time of export. The export of other NP Complex Fertilisers shall be exported on production of prior permission or NOC of the Department of Fertilisers. For determining the export policy for fertilisers falling under Chapter 31 of the Schedule II to ITC(HS) at DGFT Website.

G. Other Compliances

In addition to the above requirements, the Fertilisers Laws prescribe inter alia the following key compliances:

7.1 The dealers, manufacturers, importers and pool handling agencies shall maintain books of accounts, records, etc., with respect to their business and submit the same before the authorities, on directions of the Controller. Notably, a person holds certificate of registration for retail sale, wholesale and for sale for industrial use, shall maintain separate books of accounts for these types of sales.

7.2 For the purpose of bulk sale, it is pertinent to take note of the following:

• (a) The retail dealer may retain one bag or container of each variety of fertiliser in an open and unsealed condition for the purpose of bulk sale.

• (b) The manufacturer and importer may sell in bulk the fertiliser manufactured and imported by him respectively, to manufacturer or importer of mixture of fertilisers, compound/complex fertilisers or special mixture of fertilisers.

• (c) The Central Government (unless the municipality is the manufacturer of city compost), may authorise a manufacturer and importer for bulk sale of any fertiliser manufactured or imported by him to farmers directly.

7.3 The fees shall be discharged in accordance with Clause 36 of the Fertiliser Control Order.

7.4 For disposal of fertilisers, the reference shall be made to the following:

7.5 The manufacturers, importers and pool agencies, in consultation with the Central Government, shall appoint an officer who shall be responsible for compliance with the provisions of Fertilisers Control Order.

7.6 Before the import or within a period of fifteen days of import, the importer shall inform the Director of Agriculture of the relevant state where he intends to discharge the imported fertiliser, under intimation to the Central Government, the following:

• (a) name of fertiliser;

• (b) name of the country of import;

• (c) name of manufacturer;

• (d) quantity to be imported;

• (e) date of arrival of the consignment;

• (f) name of the discharge port;

• (g) name, designation of authorized or responsible person along with mobile number; and

• (h) any other information.

7.7 The manufacturer and importer shall possess the minimum laboratory facility, as may be specified by the Controller.

7.8 Further, some of the states have issued legislations governing the manufacture, sale and related activities pertaining to bio-fertilisers in their respective states such as Telangana Bio-Fertilisers (Monitoring and Quality Control) Act, 2006 and Andhra Pradesh Bio-Fertilisers (Monitoring and Quality Control), Act, 2006.