Urea Scam Unearthed: Subsidised urea meant for farmers reached plywood factories instead?

Zee Media investigation ‘Operation Kisan’ found an alleged network diverting subsidised urea meant for farmers to plywood and MDF factories. The probe revealed that farmers often wait for days and stand in long queues to buy fertiliser at subsidised rates because the actual price of urea is much higher. The government provides heavy subsidy on urea to make it affordable for farmers. The investigation also highlighted that several plywood companies were allegedly using the same subsidised urea to increase profits.

How subsidised urea allegedly reached factories

The investigation found mini trucks allegedly carrying yellow urea bags -- these are usually meant for agricultural use. According to the report, these bags should have reached farmers’ fields but were allegedly being supplied to plywood factories instead.

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The investigation said urea is used in making MDF and boards, and that plywood companies use large quantities of urea.

Big price gap allegedly fuelled illegal trade

According to details highlighted during the investigation:

• The government provides nearly Rs 2 lakh crore in fertiliser subsidy every year
• A bag of urea costing around Rs 3,800 is reportedly sold to farmers for nearly Rs 266 due to subsidy
• Subsidised agricultural urea costs around Rs 6 per kg
• Technical Grade commercial urea used by industries can cost up to Rs 80 per kg

The Zee Media investigation found that this huge price difference allegedly made subsidised farm urea a target for diversion. The report also noted that commercial urea is usually sold in white bags, while farmers’ subsidised urea comes in yellow bags.

Sting operation conducted in Haryana’s Yamunanagar

To investigate the alleged diversion, members of the Zee Media Special Investigation Team posed as buyers and visited Haryana’s Yamunanagar district, described in the report as a plywood hub.

During conversations recorded on hidden cameras, alleged brokers claimed there was a ‘setting’ system in place that allowed the trade to continue.

The investigation further found an alleged supply chain involving:

• Dealers
• Brokers
• Transporters
• Urea factories
• Plywood factories

According to the report, this network allegedly helped divert subsidised fertiliser meant for farmers.

Investigation alleged losses worth thousands of crores

The investigation found that alleged urea diversion causes losses of nearly Rs 20,000 crore every year. According to the report:

• Subsidy meant for farmers was allegedly being diverted
• The government was allegedly suffering GST losses
• Organised networks were allegedly involved in the trade

The investigation also aired hidden camera conversations in which alleged brokers claimed raids and inspections were managed through local arrangements.