Punjab farmers panic-buy urea, DAP amid fears of shortage

Kulwinder Singh, a farmer from Sangatpura village in Sangrur district, has been running from pillar to post in search of diammonium phosphate (DAP) and urea — two of the most essential fertilisers. Though he does not need DAP for his current paddy crop, he is stocking it for the upcoming wheat season in November.

“Last year, there was a severe shortage of DAP and urea. So this year, many farmers have begun stockpiling DAP. We require very little urea for paddy, as most of it is used after transplantation. But due to the massive demand-supply gap, dealers are selling these fertilisers at premium rates, often bundled with pesticides and other chemicals,” he told The Tribune.

Kulwinder is not alone. Across Punjab, farmers are panic-buying fertilisers fearing a repeat of last year’s shortages during the rabi season. Additionally, the diversion of subsidised fertilisers for industrial use has worsened the situation, creating a supply-demand imbalance. Taking advantage, traders are selling fertilisers at inflated prices.

DAP, of which 5.50 lakh metric tonnes (LMT) are needed for the upcoming rabi season, is being sold at premium prices — even though many farmers do not immediately require it.

Inquiries by The Tribune from various districts reveal that while a 45-kg urea bag is priced at Rs 266, it is being sold for Rs 290-Rs 300 in the open market. DAP, the fixed price of which is Rs 1,350 per 50 kg, is being sold for Rs 1,600-Rs 1,800. In response, farmer unions are demanding that the sale of fertilisers be restricted strictly through the Primary Agricultural Cooperative Societies, to prevent exploitation.

Further inquiries show that Punjab was allocated 11.50 LMT of urea between April and July. With an opening balance of 3.33 LMT, the total available stock stood at 14.83 LMT. However, the seasonal requirement is 16.50 LMT. Since a portion of urea was also used for maize cultivation during summer, the availability for paddy has been further strained.

Meanwhile, the Centre has questioned the abnormally high demand projected by Punjab and asked the state to verify the end-use of the subsidised urea.

The Union Ministry of Chemicals and Fertilisers sent a demi-official letter to the state government 10 days ago, expressing concern that urea might be getting diverted for non-agricultural use.

Acting on those concerns, the Punjab Government formed special teams from the Agriculture Department to inspect fertiliser dealers across all districts. These surprise inspections led to FIRs being registered, particularly against plywood manufacturers accused of illegally buying subsidised urea for industrial use. FIRs have been filed in Barnala, Bathinda, Kapurthala, Mansa and Sangrur districts, according to a senior official of the Agriculture Department.