Under the New Pricing Scheme, the allocation of urea under the Essential Commodities Act. 1955 (ECA) during the year 2003-04 was restricted upto 75% and 50% of reassessed installed capacity of each unit in Kharif 2003 and Rabi 2003-04 respectively. The remaining 50% urea production was available to the manufacturers for sale to the farmers at Maximum Retail Price (MRP) anywhere in the country. The Department of Fertilisers (DOF) had the authority to make suitable adjustments in view of demand and supply positions in the ECA allocation.
For more details, please go to point no. 63 (page no. 34) of Second Report of Standing Committee on Chemicals & Fertilisers (2004-05) or go to link https://eparlib.nic.in/bitstream/123456789/62613/1/14_Chemicals_And_Fertilizers_2.pdf
Department of Fertilisers have also clarified in their notification no. 12012/3/2006-FPP dated 8th March 2007 to FICC, in point F (Distribution and Movement Issues ) 7.i , as per below mentioned details:
“The Government will continue to retain the authority to direct movement of urea stock up to 50% of production depending upon the exigencies of the situation”.
For more details, please go to DOF notification dated 8th March 2007 or go to link https://fertiliserindia.com/policy-for-stage-iii-of-new-pricing-scheme-for-urea-manufacturing-units/