3/2026-2027
3rd April, 2026 : It has come to the notice of MAHFED Ltd. that instances of illegal sale and distribution of urea have been occurring in and around Sihphir, Aizawl, in contravention of the provisions of the Fertilizer (Control) Order, 1985.
Acting upon credible information, the Managing Director, MAHFED Ltd. conducted a detailed field inspection at Sihphir on 20th March 2026 and 23rd March 2026, encompassing verification of distribution practices and interaction with farmers and end-users. The findings of the inspection, corroborated by recorded statements of purchasers, reveal that urea-being a controlled and subsidized essential commodity-was being sold at prices significantly exceeding the Government-notified Maximum Retail Price (MRP) of ₹266.40 per 45 kg bag (inclusive of GST), with instances of sale reported at rates as high as ₹450 per bag.
Such acts constitute a clear and unequivocal violation of Clause 3(3) of the Fertilizer (Control) Order, 1985, which strictly prohibits sale of fertilizers above the prescribed price, and attract penal consequences under the provisions of the Essential Commodities Act, 1955.
Further, it has been detected that an unregistered private entity, namely M/s Zekyl Enterprises, Sihphir, Aizawl, has been engaged in the unauthorized procurement and distribution of urea through irregular and extra-legal channels, without possessing the mandatory Certificate of Registration under the Fertilizer (Control) Order, 1985. Such activities, including the unregulated movement and sale of subsidized fertilizer, constitute a grave breach of Clause 7 of the said Order and point towards the existence of an illicit parallel supply mechanism.
In view of the foregoing, stringent and time-bound action has been initiated. MAHFED Ltd. is proceeding against the defaulting cooperative societies through issuance of formal show cause notices, while necessary steps are being undertaken, in coordination with the competent authorities, to investigate and prosecute the unauthorized operations of M/s Zekyl Enterprises, including initiation of penal proceedings, and closure of illegal activities.
The Government reiterates its zero-tolerance stance against any form of malpractice in the distribution of subsidized agricultural inputs. Such acts not only undermine the regulatory framework but also exploit the farming community and distort the equitable distribution mechanism intended for their welfare.
All stakeholders are hereby cautioned to adhere strictly to the provisions of the Fertilizer (Control) Order, 1985 and other applicable laws. Any deviation shall invite strict legal action, including prosecution under the relevant statutory provisions.
This is issued with the approval of the competent authority.
