Ahmedabad, 11 May, 2013

Director General of Central Excise Intelligence has unearthed a scam of diversion of subsidize chemical fertilizer for farmers to chemical industries.

Ankleshwar based Meghmani Organics Limited and Paru Jaykrushna’s Asai Songwon Color Limited are among 11 companies raided by Excise Intelligence teams. Subsidize fertilizer for farmers was used for making of CPC(Copper Phthalocyanine Crude) dyes in these industrial units.

There’s just 2% excise duty for agricultural use, while for industrial purpose the duty is as high as 12%. Farmers get one bag at a price of Rs 5.36 per Kg while industry need to source it at a price of Rs 32 per Kg.

Chemical fertilizer produced by KRIBHCO, GNFC, GSFC and IFCO should reach farmers, but it it suspected that the dealers divert it to industries.

Due to illegal diversion of subsidize fertilizer to industries, on one hand, government faces loss of crores of Rupees of tax, and on the other hand farmers complain shortage of fertilizer.

Companies that were raided

Meghmani Organics, Panoli
Asai Songwon Color Limited
Narayana Industries, Naroda
A-One Chemicals, Ankleshwar
Ishan Dyes & Chemicals Limited, Vatva
Narayana Organics, Ankleshwar
Ramdev Chemical, Ankleshwar
Saraswati Pigment, Ankleshwar
Deep Chem, GIDC, Ankleshwar
Phthalo Colors and Chemicals, Vapi
Ganesh Pigment Ankleshwar