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Section 24 Fertilizers Control Orders - Main Points and Insights
Definition of Fertilizers and Dealers: The Fertilizer Control Order (FCO) defines 'fertilizer' broadly to include substances used or intended for soil or crop fertilization, including mixtures, bio-fertilizers, and special formulations ["Md. Kashim Ali VS State of Assam Represented by the Commissioner & Secretary To The Government of Assam, Agricultural Department - Gauhati"]. Dealers, including retail dealers, must operate under registration and comply with specific regulations regarding sale and storage ["Md. Kashim Ali VS State of Assam Represented by the Commissioner & Secretary To The Government of Assam, Agricultural Department - Gauhati"].
Regulatory Powers and Control Orders: The Central Government is empowered under Clause 3 of the Control Order to fix prices of fertilizers and issue movement control orders (e.g., under the Fertiliser (Movement Control) Order, 1973) to regulate supply and export, including prohibitions on export without permits ["State Of Bihar VS Oswal Chemicals And Fertilizers Limited - Patna"], ["State Of M. P. VS Narayan Singh: Shamsher Singh - Supreme Court"]. Orders under Sec. 24 are enforceable, and violations such as illegal export or sale can lead to penalties ["Md. Kashim Ali VS State of Assam Represented by the Commissioner & Secretary To The Government of Assam, Agricultural Department - Gauhati"].
Manufacture, Mixture, and Standards: The Order restricts the preparation of fertilizer mixtures to licensed entities, requiring adherence to prescribed standards (Part A of Schedule I). It also mandates that fertilizers conform to quality standards, with inspections and sampling procedures outlined in Schedule II ["Gorantla Satyanarayana VS State of Telangana - 2023 0 Supreme(Telangana) 135"], ["Janta Fertilizer Centre VS State of Punjab - Punjab and Haryana"], ["Commissioner of Income Tax VS Guntur District Co-operative Marketing society Ltd - Andhra Pradesh"].
Inspection, Seizure, and Violations: Inspectors are empowered under Clauses 28 and 19 to conduct inspections, draw samples, and enforce compliance. Unauthorized seizure or inspection without proper authorization violates the Order ["Janta Fertilizer Centre VS State of Punjab - Punjab and Haryana"], ["VISHWAKARMA VS STATE OF U P - Allahabad"]. Penalties are prescribed for violations such as manufacturing substandard fertilizers, illegal storage, or sale without proper registration ["Ramaiah Nadar . VS State by the Fertiliser Inspector, Thuckalay. - Madras"].
Pricing and Registration: The Central Government can fix fertilizer prices, and registration certificates are necessary for dealers and manufacturers. The registration process and conditions are specified, including storage requirements and record-keeping ["State Of Bihar VS Oswal Chemicals And Fertilizers Limited - Patna"], ["Hindustan Agencies VS State - Patna"], ["Ustapalli Krishna Murthy Setty VS State Of A. P. - Andhra Pradesh"].
Export and Movement Control: Export of fertilizers requires permits; unauthorized export is prohibited and punishable under the Act ["State Of M. P. VS Narayan Singh: Shamsher Singh - Supreme Court"]. Movement control orders regulate the distribution and supply, with specific provisions for monitoring and enforcement ["Md. Kashim Ali VS State of Assam Represented by the Commissioner & Secretary To The Government of Assam, Agricultural Department - Gauhati"].
Legal and Penalty Provisions: Violations such as manufacturing without standards, illegal export, or failure to comply with inspection orders attract penalties, including fines and imprisonment ["Ramaiah Nadar . VS State by the Fertiliser Inspector, Thuckalay. - Madras"], ["E. S. I. Corporation through its Regional Director Hyderabad VS A. P. State Co-operative and Marketing Federation Ltd. , Jambagh, Hyderabad General Manager. - Andhra Pradesh"]. Orders issued under Sec. 24 are subject to judicial review, and illegal actions like illegal seizures or non-compliance can be challenged ["VISHWAKARMA VS STATE OF U P - Allahabad"].
Analysis and Conclusion
The Fertilizer (Control) Orders, especially Sec. 24, establish a comprehensive regulatory framework for the manufacture, sale, storage, import, export, and distribution of fertilizers in India. They empower authorities to fix prices, enforce quality standards, control movement, and penalize violations. Strict adherence to licensing, registration, and procedural requirements is mandatory, with enforcement through inspections, sampling, and legal penalties. The orders aim to ensure quality, prevent illegal trade, and stabilize fertilizer prices, with provisions for judicial review to check misuse of powers ["Md. Kashim Ali VS State of Assam Represented by the Commissioner & Secretary To The Government of Assam, Agricultural Department - Gauhati"] ["Gorantla Satyanarayana VS State of Telangana - 2023 0 Supreme(Telangana) 135"] ["VISHWAKARMA VS STATE OF U P - Allahabad"].
In the agricultural sector, ensuring the quality and proper distribution of fertilizers is crucial for farmer productivity and food security. A common query arises: sec 24 fertilisers control orders – what does Section 24 of the Fertilizer (Control) Order, 1985 (FCO) entail? This provision forms the backbone of regulatory enforcement in the fertilizer industry, focusing on inspections, sampling, and seizures to uphold standards. However, its application hinges on strict adherence to authorization protocols. This blog post breaks down the key aspects, drawing from legal precedents and related cases, to help manufacturers, dealers, and authorities navigate compliance.
Note: This is general information based on legal documents and is not specific legal advice. Consult a qualified lawyer for your situation.
The Fertilizer (Control) Order, 1985, issued under Section 3 of the Essential Commodities Act, 1955, regulates the manufacture, sale, and distribution of fertilizers to prevent adulteration and ensure quality. Section 24 specifically empowers authorities to conduct inspections, draw samples, search premises, and seize non-compliant fertilizers. Its primary goal is to enforce prescribed standards outlined in the Order's schedules. Tamil Nadu Essential Plant Nutrients Manufacturers VS Union of India & Another - 2003 Supreme(Mad) 220
Key objectives include:- Maintaining fertilizer quality to protect consumers (farmers).- Facilitating equitable distribution.- Enabling penalties for violations under the Essential Commodities Act.
However, these powers are not absolute. They must be exercised by duly appointed and notified Inspectors, as unauthorized actions render proceedings invalid. Gorantla Satyanarayana VS State of Telangana - 2023 0 Supreme(Telangana) 135Gorantla Satyanarayana VS State of Telangana, Rep. through Public Prosecutor, High Court for the State of Telangana, Hyderabad - 2022 0 Supreme(Telangana) 549
Section 24 grants robust enforcement tools, but only to qualified personnel. Legal documents emphasize that inspections, searches, sampling, and seizures can only be performed by Inspectors notified by the State or Central Government. For instance:
The powers to conduct any such inspection, search and consequently draw samples for the purpose of examination can only be done by an Inspector who has been notified and appointed by the State or Central Government. Gorantla Satyanarayana VS State of Telangana - 2023 0 Supreme(Telangana) 135
Similarly:
Unless the person is notified under the Fertilizer (Control) Order, 1985, the question of conducting search or seizure in respect of fertilizer, or bio fertilizer does not arise. Gorantla Satyanarayana VS State of Telangana, Rep. through Public Prosecutor, High Court for the State of Telangana, Hyderabad - 2022 0 Supreme(Telangana) 549
This framework ensures accountability and prevents abuse. Manufacturers and dealers must verify an inspector's credentials – typically through official notification – before allowing access. Failure to do so could expose businesses to illegal actions, which courts may quash.
Non-compliance with these can lead to challenges under Section 482 of the CrPC or quashing via Section 319. M. P. Singh VS State Of Punjab - 2006 Supreme(P&H) 235
Courts have consistently ruled unauthorized enforcement illegal. In one case, an inspection by J. Radha, not a notified Inspector, was deemed invalid:
The complainant J.Radha... is not a notified Inspector appointed specifically by the State or Central Government... such inspection, search and seizure is illegal. Gorantla Satyanarayana VS State of Telangana - 2023 0 Supreme(Telangana) 135
This led to quashing of proceedings. Similarly, proceedings without impleading the manufacturing company or proving director liability fail under Section 10 of the Essential Commodities Act. AJIT @ AJEET S/O CHANDRAKANTH DHANASHETTI AND ORS Vs THE STATE OF KARNATAKA AND ANR - 2023 Supreme(Online)(KAR) 19349
Related rulings reinforce this:- Dealers or Managing Directors not directly responsible for quality control cannot be held liable without evidence. AJIT @ AJEET S/O CHANDRAKANTH DHANASHETTI AND ORS Vs THE STATE OF KARNATAKA AND ANR - 2023 Supreme(Online)(KAR) 19349- Societies distributing to members (not open market) may not qualify as dealers under Clause 2(f). State of Punjab and Others v. Guno Majra Cooperative Agriculture Service Society Ltd. - 2000 Supreme(Online)(SC) 66
The FCO integrates with other laws. Clause 21-A, requiring lab facilities for manufacturers, has been upheld as constitutional, not excessive delegation, and compliant with parliamentary laying. Tamil Nadu Essential Plant Nutrients Manufacturers VS Union of India & Another - 2003 Supreme(Mad) 220
Under Clause 8, sellers need registration certificates, with notifying and inspecting authorities defined. Violations trigger penalties, but only valid enforcement holds. Fertilizer Wholesale Dealers Welfare Association, Vijayawada VS Government of Andhra Pradesh - 2009 Supreme(AP) 575
In company liability cases, only those responsible (e.g., quality control officers) are arraigned alongside the firm. AJIT @ AJEET S/O CHANDRAKANTH DHANASHETTI AND ORS Vs THE STATE OF KARNATAKA AND ANR - 2023 Supreme(Online)(KAR) 19349 Directors summoned without proof of charge face quashing under CrPC Section 319. M. P. Singh VS State Of Punjab - 2006 Supreme(P&H) 235
Historical controls, like the Movement Control Order, 1973, highlight evolving regulations, but Section 24 remains pivotal for current enforcement. STATE OF MADHYA PRADESH vs NARAYAN SINGH & ORS.
Government duties extend to compost flexibility and quality testing, complementing chemical fertilizers. Vijay Laxmanrao Dak VS Union of India (Through its Secretary) Ministry of Environment - 2018 Supreme(Bom) 297
In summary, Section 24 safeguards the fertilizer supply chain but protects against overreach through strict authorization rules. As fertilizer demand grows in India, understanding these nuances prevents costly disputes. For tailored advice, consult legal experts familiar with the Essential Commodities Act and FCO.
References:1. Gorantla Satyanarayana VS State of Telangana - 2023 0 Supreme(Telangana) 1352. Gorantla Satyanarayana VS State of Telangana, Rep. through Public Prosecutor, High Court for the State of Telangana, Hyderabad - 2022 0 Supreme(Telangana) 5493. AJIT @ AJEET S/O CHANDRAKANTH DHANASHETTI AND ORS Vs THE STATE OF KARNATAKA AND ANR - 2023 Supreme(Online)(KAR) 193494. State of Punjab and Others v. Guno Majra Cooperative Agriculture Service Society Ltd. - 2000 Supreme(Online)(SC) 665. Tamil Nadu Essential Plant Nutrients Manufacturers VS Union of India & Another - 2003 Supreme(Mad) 2206. M. P. Singh VS State Of Punjab - 2006 Supreme(P&H) 2357. Fertilizer Wholesale Dealers Welfare Association, Vijayawada VS Government of Andhra Pradesh - 2009 Supreme(AP) 575
#FertilizerControlOrder #Section24FCO #AgriLawIndia
‘Retail dealer’, as per Clause 2[t], means a dealer who sells fertilisers to farmers or plantations for agricultural use such as for fertilisation of soil and increasing productivity of crops. Provided that the registering authority, Notified Authority or, as the case may be, the controller shall immediately furnish to the affected person details and the nature of contravention alleged to have been committed by such person and, after giving him an opportunity of being heard, pass final orders ... As per Clause 2[h], ‘fertiliser’ means any substance used or....
(Movement Control) Order, 1973. ... Appeal No. 24/78 a lorry driver and a coolie were prosecuted for exporting fertilisers without a permit there- p style= ... Thus by introducting these words in Sec. ... Now according to the explanation to Sec. ... Interpreting the amendment made to the Sec.
What all the federation in its Fertilisers Division does is to place orders with the Madras fertilisers and E I D Parry Company for supply of fertilisers on credit basis or for cash. ... ... ( 6 ) THE Fertilisers Division, however, is under the control of an officer deputed by the Madras Fertilisers limited. ... By another notice dated 24-9-1977, the Corporation made an adhoc assessment under Sec 45-A of the Act, demanding the paym....
Ghataprabha Fertilisers Private Limited. The Managing Director is not a quality control officer. ... As per Section 10 of the EC Act as referred to supra and the Control Order, 1995, the company which manufactures the substandard fertilisers is to be arraigned as accused for the proceedings in the ... Along with company, necessary directors/persons who are responsible for production of substandard fertilisers, Managers, Secretary or Quality Control Officers who are p style="te....
Clause 3 of the Control Order authorises the Central Government to fix the prices of fertilisers. ... ... 24. Next question for consideration is as to whether the Registering Authority has power under the Control Order to issue any such order or not? ... They filed the writ application for quashing the order dated 29-3-1999 by appellant No.2 the Agriculture Production Commissioner dismissing the appeal against the orders dated 18-1-1999 and 24-2-1999, passed by appellant No.3 Director....
1 The only question that arises in this appeal is whether the Agriculture Service Society is a "dealer" within the meaning of clause 2(f) of the Fertiliser (Control) Order, 1985 (hereinafter referred to as "the Order") for the purposes of clause 7 of the said Order. ... In fact, fertilisers purchased by the Society are for supply and distribution to its members and not for any commercial or business activity. ... Under the bye law, it is not permissible for the respondent Society to sell fertilisers in open market or to anybody else othe....
Restriction on preparation of mixtures of fertilizer No person shall carry on the business of preparing any mixture of fertilisers. or special mixture of fertilizers, Bio-fertilizers or Organic fertilisers except under and in accordance with the terms and conditions of a certificate ... Standards of mixtures of Fertilisers (1) Subject to the other provisions of the order- (a)no person shall manufacture any mixture of fertilisers whether of solid or liquid fertilizers specified in Part A of schedule I unless such mixture ....
24. ... and mixtures of fertilisers. ... Laboratory for analysis.- (1) A fertiliser sample, drawn by an inspector, shall be analysed in accordance with the instructions contained in Schedule II in the Central Fertilisers Quality Control and Training Institute Faridabad or Regional Fertiliser Control Laboratories at Bombay, Madras or Kalyani ... Part-VI of the 1985 Order, deals with 'restrictions on manufacture/import and sale etc. of fertilisers', while Clause 19 of the 1985 Order dea....
Sindri Fertilisers and Chemicals Ltd., AIR 1957 Pat 10, there are some observations of a Bench of this Court in respect of the Sindri Fertilisers Company which show that notwithstanding the extensive nature of the control exercised by the Central Government the company retained ... So far as the control of the Central Government over the working of the company is concerned, it may be stated that it is almost similar to the control exercised by the Central Government over the Sindri Fertilisers....
No.29 of 1994 under Sec.7(1)(a)(ii) of the Essential Commodities Act read with 0.3(3), 4, 5, 7 and 35 of the Fertiliser (Control) Order, 1985 and was sentenced to undergo rigorous imprisonment for one year and to pay a fine of Rs. 1,500, in default to suffer simple imprisonment for 4 months. ... P.W. 1 is the Agricultural Officer at Nagercoil empowered to check the premises of the appellant under the Fertiliser (Control) Order, 1985. ... The next violation is O.4 which speaks about display of stock position and price list of fer....
7. Duties of Department of Fertilisers, Ministry of Chemicals and Fertilisers. 8. Duties of Ministry of Agriculture, Government of India - The Ministry of Agriculture through appropriate mechanisms shall,( a) provide flexibility in Fertiliser Control Order for manufacturing and sale of compost; (b) propagate utlisation of compost on farm land; (c) set up laboratories to test quality of compost produced by local authorities or their authorised agencies and (d) issue suitable guidelines for maintaining the quality of compost and ratio of use of compost vis-a-avis chemical fer....
It is a self-contained Control Order, which prescribes the procedure for dealing in fertilisers. Clause (8) of the Control Order provides for making an application for intimation or registration, for persons intending to sell or offer for sale or carrying on the business of selling the fertilisers. It prescribes the Notifying Authorities, Inspecting Authorities, procedure for getting the Certificate of Registration, restrictions on manufacture and sale of fertilisers, mechanism for analysis of samples, Enforcement Authorities and it also contains the penal provisions for th....
8. The learned counsel for the petitioner submitted that under the fertilizer Control Order, 1985, under clause 24 of the Fertilizer Control order it is necessary for every manufacturing organisation and pool handling agency to appoint a responsible officer of the Company on their behalf for the compliance of the provisions of the orders. Sec.24 of the Fertilizer control Order is reproduced as under:
In exercise of the said powers, the Central Government issued Fertiliser (Control) Order, 1985, to regulate quality, price, supply and distribution of fertilisers. The fertilisers has to conform to prescribed standards as laid down in Schedule I Part-A of the Order in respect of straight and complex fertilisers including micro-nutrients or micro-nutrient fertilisers including mixtures of NPK fertilisers as well as mixture of micro-nutrient fertilisers with or without NPK are only to be produced and stocked for sale and distribution. Provision have been made empowering the S....
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