BHUBANESWAR: Amid supply constraints arising out the West Asia crisis, the state government has issued strict directives against illegal diversion of fertilisers and ordered transparent and equitable distribution through cooperative societies during the kharif 2026 season.
Taking serious note of reports of fertilisers - particularly urea - being diverted to private retailers before meeting the requirements of cooperative societies, the Cooperation department has directed the Odisha State Cooperative Marketing Federation (MARKFED) to strictly adhere to the standard operating procedure (SoP) governing fertiliser distribution.
To prevent diversion of fertilisers, MARKFED has been instructed not to supply stocks to private retailers until the entire requirement of primary agricultural cooperative societies (PACS) and LAMPS as finalised by District Level Committees (DLCs), is fully met.
The department has also flagged reports of transport contractors collecting transportation charges in cash from PACS and large area multi-purpose cooperative societies (LAMPS) as well as improper sharing of margins provided by fertiliser companies.
Describing such practices as violations of the cooperative distribution system, the government has instructed MARKFED to take immediate corrective measures and strengthen monitoring of fertiliser movement across districts. In a letter, the department prohibited collection of transportation charges in cash from PACS and LAMPS.
It directed that all costs, including fertiliser and transportation charges, be incorporated into the official billing system and routed exclusively through District Central Cooperative Banks (DCCBs). Area managers of MARKFED will be held personally accountable for ensuring compliance.
The government has also directed the federation to ensure transparent sharing of margins offered by fertiliser companies. As a guiding principle, the margin should be shared in a 75:25 ratio between PACS/LAMPS and MARKFED unless otherwise approved.
Emphasising strict implementation of the joint fertiliser SoP issued by the Agriculture and Cooperation departments, the government has asked MARKFED to establish a robust monitoring mechanism and undertake daily reviews of fertiliser supply. Weekly compliance reports are to be submitted to the Cooperation department.
The directives assume significance as the state government has decided that 60 per cent of the district-wise fertiliser requirement during kharif 2026 will be distributed through PACS through MARKFED. The move is aimed at strengthening the cooperative network and ensuring timely availability of fertilisers, particularly urea, to farmers during the crucial agricultural season.
