Forced bundling
Also called: tagging of fertilisers, Tagging of fertilisers, Fertiliser tagging · Topic: Land Reforms, the Green Revolution and Farm Subsidies · NCERT: Beyond NCERT
Meaning
Forced bundling, also called tagging of fertilisers, happens when a dealer sells subsidised fertiliser (such as urea or DAP) only if the farmer also buys other products they do not need. The fertiliser bag may still carry its official MRP (maximum retail price). But the farmer pays for the extra items too, so the real cost goes up. Part of the subsidy is cancelled before it reaches the farmer. In 2026, the Parliamentary Standing Committee on Chemicals and Fertilizers said this happens again and again. It also said the response so far has been only advisories and public appeals, with no binding rules. The committee recommended amending the Fertilizer (Control) Order, 1985 to ban forced bundling and set penalties for it.
Example
At rabi sowing time, a wheat farmer in Uttar Pradesh asks for a bag of DAP. The dealer says the DAP is available only if the farmer also buys a bottle of a growth promoter. The farmer needs the DAP before the sowing window closes, so they pay for both. The DAP was sold at its MRP, but the farmer's total bill is higher.
Don't confuse with
- MRP padding by companies: under the Nutrient Based Subsidy scheme, the CAG found that some companies added unreasonable costs into the MRP itself. That happens at the company level and raises the printed price. Forced bundling happens at the dealer's shop, and the printed price stays the same.