Shri Raghunath Patil, President of Shetkari Sanghatana Vs Rashtriya Chemicals and Fertilizers Limited (Competition Commission of India)
Competition Commission of India (CCI) has ordered an investigation into Rashtriya Chemicals and Fertilizers Limited (RCFL) for alleged anti-competitive practices involving the sale of Urea in Maharashtra. The order, issued under Section 26(1) of the Competition Act, 2002, follows a complaint by Shri Raghunath Patil, President of Shetkari Sanghatana, who accused the public sector undertaking of forcing the purchase of other fertilizers along with Urea.
Allegations of Forced Product Tagging
According to the complaint filed under Section 19(1)(a) of the Act, RCFL allegedly linked the sale of Urea with non-subsidized products, compelling dealers and farmers to buy additional fertilizers or agrochemicals they had not demanded. The practice, known as “tagging” or “tying,” has reportedly been ongoing in Maharashtra since at least the 2022 Kharif season.
The informant claimed that Urea manufacturers exploit the government’s fixed maximum retail price by bundling other products with Urea, which is heavily subsidized and regulated. Evidence presented included farmer and dealer protests, government notices declaring the practice illegal, and audio-video recordings showing dealers being forced to buy RCFL’s other fertilizers alongside Urea.
Regulatory Warnings and Continued Violations
Multiple government agencies, including the Department of Fertilizers and the Maharashtra Agriculture Commissionerate, issued warnings in 2022 and 2023 against tagging. Despite these directives, the informant alleged that the practice persisted in 2024, with fresh complaints emerging from other states such as Uttar Pradesh, Punjab, and Karnataka.
The Commission was presented with invoices, receipts, and sworn statements from farmers confirming the alleged practice. One cited case involved a retailer in Nashik district forcing the purchase of a water-soluble NPK product with Urea.
