Buffer stock of Urea : CM's initiative unlikely to benefit much
Sluggish pace, unequal price deface plan
Source: The Sangai Express

Imphal, July 08, 2012: Even as Chief Minister Okram Ibobi has sanctioned Rs 9.6 crores to the Agriculture Department to procure and amass 10,000 metric tonnes of Urea in the buffer stock with a view to avoid problems of fertilizer shortage in the State during the months of July and August, the same initiative of the Chief Minister is unlikely to bring much benefit.

According to information received from Agriculture Department, after the amount of Rs 9.6 crores was sanctioned by the AO Headquarters in April, the department has been working to purchase 10,000 metric tonnes of Urea from Brahmaputra Valley Fertilizer Corporation (BVFC) and ship the consignment from Silchar-based Assam State Warehouse Corporation (ASWC) to Imphal along Imphal-Jiribam highway.

But only 2628 metric tonnes of Urea have reached Imphal till July 2 even though the procurement process started in the month of April.

As per a report submitted by Agriculture Department to the Government, the sanctioned amount of Rs 9.6 cores would be used in the following manner; Rs 4,39,58,800 for purchasing 10,000 metric tonnes of Urea at the Silchar rate of Rs 8395.88 per metric tonne, Rs 400.00.000 for weight handling, Rs 59,000 as storage charge for Silchar ASWC, Rs 170,000 as service tax, Rs 41,97,800 as local sales tax, and another Rs 3,11,000 as combined expenditure for godown management, storage charge, loading and unloading charge and other essential charges.

Out of Rs 9.6 cores sanctioned to the Agriculture Department for procuring buffer stock, the department should pay back Rs 2000000 as exigency charge which includes loading and unloading charge, essential charge, godown hiring charge etc.

But the report submitted by the Agriculture Department maintained that the exigency charge would require Rs 31,10,000. The contract for transportation of 10 metric tonnes of Urea from Silchar to Imphal was awarded to M/S Ranganamei Traders based at Major Khul, Imphal.

The transportation charge entitled to the M/S Ranganamei Traders is Rs 4000 per metric tonne.

On the other hand, some fertilizer dealers informed The Sangai Express that some of them have been procuring fertilizers from Silchar through Jiribam by themselves.

The common rate for transportation of fertilizer from Silchar to Imphal Rs is Rs 2000 to Rs 2200. Dealers also provide Urea to agents at Rs 470 per bag.

But this Urea is brought along Imphal-Dimapur Road from the Namrup factory of BVFC.

The price of Urea reaches Rs 470 per bag at Imphal because the dealers have to pay several 'taxes' to a number of armed groups along Imphal-Dimapur highway.

In the meantime, Agriculture Department has proposed to the Government to make Urea, which are brought from Silchar for the buffer stock, available to agents at Rs 491 per bag.

It remains a big question why the Urea brought along Imphal-Jiribam highway should be dearer than those brought along Imphal-Diampur road given the fact that very little 'taxes' are paid along Imphal-Jiribam highway.

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