CCI To Probe RCF For Alleged Urea Bundling Breach Under Section 4(2)(E) Of Competition Act

(MENAFN- KNN India) Mumbai, Aug 11 (KNN) The Competition Commission of India (CCI) has ordered an investigation into Rashtriya Chemicals and Fertilizers (RCF), a government-owned 'Navratna' company, over allegations of unfair sales practices in Maharashtra.

The CCI has directed its investigative arm, the Director General, to examine the matter and submit findings within 60 days. It clarified that these initial observations are only preliminary and will not influence the final verdict.

The case began after a complaint from an individual, claiming that RCF was forcing dealers and farmers to buy non-subsidised products, such as water-soluble fertilizers, along with subsidised urea.

This alleged bundling is said to violate provisions of the Competition Act related to abuse of dominant market position and anti-competitive agreements.

Urea is a crucial agricultural input, sold at a government-fixed maximum retail price and heavily subsidised to keep costs affordable for farmers.

The CCI noted that RCF supplied over 42% of Maharashtra's urea in 2023–24, far exceeding the share of any competitor.

This dominant position, according to the regulator, could have enabled RCF to link the sale of non-subsidised items to the purchase of urea-potentially breaching Section 4(2)(e) of the Competition Act.

The complaint was supported by letters from government departments, communications from dealers' associations, media reports, and video evidence.

Despite repeated instructions from both central and state authorities to avoid such practices, reports of coercive sales have continued from several parts of the state.

The investigation will assess whether RCF's conduct restricted competition or harmed farmers' interests, and determine if any penalties or corrective measures are necessary.

(KNN Bureau)

MENAFN11082025000155011030ID1109913288