Smuggling of subsidised agri-grade urea thrives in Yamunanagar district

The Centre launched neem-coated subsidised agricultural-grade urea in 2015, aimed at preventing the diversion of subsidised urea for non-agricultural purposes and enhancing soil health. But, despite the crackdown on urea mafia by the Haryana Agriculture and Farmers Welfare Department, the CM flying squad and other government agencies; the smuggling of such urea continues unabated in Yamunanagar district. There is a huge demand for it in plywood units, cattle feed manufacturing units and other industries. In Yamunanagar district, most of the smuggled subsidised urea is reportedly being supplied in plywood factories, where it is used to prepare glue, an adhesive to make plywood products. The technical grade urea (also known as industrial urea) or other chemicals should be used in plywood factories in place of subsidised urea to make glue. But, the higher rates of technical-grade urea promote smuggling of agriculture grade urea in this district, causing shortage of fertilisers for the farmers from time to time.

Why did the government make neem-coated urea?

The government made neem-coated urea to prevent the diversion of subsidised urea for non-agricultural purposes by slowing down the release of nitrogen, making it less suitable for industrial uses like glue production. The neem coating also works as a deterrent, making it costly to separate the urea from the neem coating for industrial use. But, the industrial units manage to separate the neem coating easily from the neem- coated urea using a number of methods, including using specialised equipment suchas activated carbon filters.

Why is subsidised urea used in the plywood industry?

Yamunanagar district has about 350 plywood factories, which need glue to prepare plywood products. A number of them reportedly use neem-coated subsidised agriculture-grade urea illegally instead of using technical-grade urea. The reason behind using subsidised urea is its cheaper rate. The rate of a 45-kg bag of subsidised urea is only Rs 266.50. However, the rate of 50-kg bags of technical-grade urea is about Rs 2,200-Rs 2,400. Therefore, a number of plywood factories and glue manufacturing units prefer to buy subsidised urea through illegal means instead of buying costlier technical- grade urea.

Who is behind the illegal business?

Private persons/agents, several fertiliser dealers and a number of plywood factories are behind the illegal business. It is alleged that some fertiliser dealers supply subsidised urea directly or through some dealers or private agents to the plywood industry to get a good margin of profit.

Who suffers due to the illegal business?

Farmers have to suffer due to the illegal business as several times, they don’t get subsidised urea for their crops on time. Sometimes, they have to stand in queues to get urea bags and other times, they are forced to come to the streets to get urea bags. However, the authorities of the Agriculture Department said the farmers did not face any problem and were given 125725 MT of subsidized urea in 2024-25.

What action is being taken?

Aditya Pratap Dabas, Deputy Director of Agriculture of Haryana Agriculture and Farmers Welfare Department, Yamunanagar, said strict action was being taken against persons involved in illegal supply and use of subsidised agriculture-grade urea. He said from 2020 to March 2025, 41 FIRs were registered against suppliers and users of the subsidised urea. Besides, 27 licences of fertiliser dealers were cancelled and 112 licences were suspended for their alleged involvement in illegal supply of subsidised urea during this period. Similarly, show-cause notices were also issued to 189 fertiliser dealers, plywood factories and other persons for the said violation in the same period.