Black Market Urea Fertiliser Crisis Hits Himachal Farmers

Farmers in Himachal Pradesh are facing a severe shortage of urea fertiliser as supplies are allegedly being diverted to the black market in Punjab, where prices are nearly 50% higher. Despite the allocation of thousands of tonnes for local use, many farmers report being turned away from storage facilities. The situation has raised concerns about illegal operations and the need for stricter monitoring. As farmers demand action, the implications of this crisis could significantly impact crop yields during the crucial wheat season.

By Narendra Chaudhary Dec 22, 2025, 16:06 IST

Urea Fertiliser Misallocation in Himachal Pradesh

Shimla: Reports indicate that urea fertiliser designated for farmers in Himachal Pradesh is being illicitly diverted and sold in Punjab at prices nearly 50% higher. This situation arises as local farmers face significant challenges in obtaining supplies during the critical wheat planting season.

Sources reveal that Una district has become a key hub in this illegal distribution network. Farmers throughout Himachal Pradesh express frustration over their efforts to secure fertiliser, often waiting in long lines at storage facilities only to be informed that supplies are depleted.

In stark contrast, urea bags are reportedly being covertly loaded into vehicles at night and transported to Punjab, where demand and prices are considerably elevated.

Discrepancy Between Reported Stocks and Actual Availability

This month, approximately 3,400 tonnes of urea were allocated to Himachal Pradesh for wheat cultivation, with 850 tonnes specifically designated for Una district. Regulations stipulate that adequate stock should be accessible at all storage facilities. However, farmers frequently report being turned away under the guise of stock shortages.

Allegations suggest that dealers managing large private storage facilities in Una are illegally transferring urea to districts like Hoshiarpur in Punjab, where they can achieve higher profits. A 45-kg bag of urea, officially priced around Rs 270, is allegedly acquired from storage for nearly Rs 300 and subsequently sold in Punjab for as much as Rs 400.

Reasons Behind Higher Prices in Punjab

Sources indicate that Punjab is experiencing a tighter supply of urea and other fertilisers due to restrictions implemented after years of excessive chemical usage harmed soil health. Despite the elevated prices, farmers in Punjab are willing to pay more to fulfill their crop needs. Additionally, urea is utilized in various industries, including diesel emission control, plastics, resins, detergents, and pharmaceuticals, further increasing demand.

With limited availability in Punjab, illegal operators find Una to be a lucrative source for quick profits, transporting fertiliser in pickup trucks during the night or early morning to evade inspections.

Farmers Call for Action Amid Ongoing Inquiry

Numerous farmers have shared experiences of being denied fertiliser, only to witness bags being loaded onto vehicles from the same storage facilities shortly after. “Local sales yield lower profits. Sending it to Punjab guarantees immediate returns,” stated one farmer, urging for stringent measures.

Farmers have accused storage operators of releasing fertiliser in bulk to a single buyer, which is then diverted out of the state. They have called on IFFCO and state authorities to enhance monitoring, emphasizing that fertiliser allocated for Himachal farmers cannot be legally sold outside the state.

An official from IFFCO acknowledged awareness of the situation. “This is entirely illegal. If any such incidents are identified, strict action will be taken against those responsible,” he stated. The alleged scheme raises significant concerns regarding the oversight of fertiliser distribution and enforcement, particularly as farmers in Himachal struggle to safeguard their crops amid shortages.