A Maharashtra-based farmers’ union, Shetkari Sanghatana, has filed an anti-trust complaint with the Competition Commission of India (CCI) against Rashtriya Chemicals and Fertilizers Ltd (RCF), alleging abuse of dominant position in the sale of urea, the union’s president, Raghunath Patil, said.
The complaint, filed by Patil, contends that RCF has been coercing farmers and dealers into purchasing additional fertiliser products along with urea, a practice that could violate India’s competition laws.
While confirming that he has filed a complaint against RCF, Patil, however, noted that he is yet to get any intimation or confirmation from CCI that his application has been admitted.
Patil has in the complaint noted that RCF allegedly conditions the sale of urea — a heavily regulated and subsidized essential fertiliser — on the forced purchase of additional products. This practice, known as “product tying” or “tagging,” is claimed to restrict market access for other fertiliser manufacturers while burdening farmers with unnecessary expenses.
“Before approaching CCI I spoke to local retailers who said linking (tagging) is done as companies are forcing them to lift certain amount of otber products while they send chemical fertilisers for further distribution.
We also approached companies who claimed that it is being done to improve soil as the non-urea bio products when applied with urea will also help achieve government’s objective of balanced use of fertiliser”, Patil told businessline.
- Also read: Govt extends free imports of yellow peas till May-end; imposes 11% duty on lentils
For years, farmers have struggled with these coercive sales tactics, which force them to buy additional fertilisers they neither need nor can afford. This is an unfair and anti-competitive practice that must end, according to Patil.
RCF Chairman and Managing Director SC Mudgerikar was not available for comment.
Meanwhile, the Shetkari Sangatana’s complaint further alleges that despite multiple warnings from government agencies, RCF has continued to engage in these tactics. The Ministry of Chemicals and Fertilisers had previously flagged concerns about forced bundling of fertilisers in 2022, while state governments, including Maharashtra and Punjab, have issued notices warning companies against such practices.
Notably, an internal meeting held by fertiliser manufacturers in June 2024 acknowledged complaints from dealers and farmers about mandatory product purchases. However, the practice reportedly persisted, prompting Shetkari Sanghatana to escalate the issue to the CCI.
RCF, which is 75 per cent government-owned and was recently granted “Navratna” status, enjoys a significant market share in Maharashtra, where it supplies over 40 percent of the state’s urea requirements. This market dominance, the complaint argues, gives RCF undue influence over distribution channels, making it difficult for farmers to access urea without purchasing additional, often costlier, fertilisers.
The Shetkari Sanghatana’s submission invokes Sections 3 and 4 of the Competition Act, 2002, which prohibit anti-competitive agreements and abuse of dominant market position. The complaint also cites multiple representations made by farmers and dealers across India to the Ministry of Agriculture, seeking urgent intervention.
With CCI now reviewing the case, legal experts suggest that an investigation could lead to significant regulatory action, including fines or directives to alter RCF’s business practices. If proven, the allegations could reshape India’s fertiliser distribution market, ensuring that farmers receive essential inputs without restrictive conditions, agriculture sector observers said.