Investigation Ordered: RCF Under Scrutiny for Anti-Competitive Practices

The Competition Commission of India (CCI) has initiated a probe against the state-operated Rashtriya Chemicals and Fertilizers (RCF) for allegedly obliging dealers and farmers to purchase additional products with urea in Maharashtra.

The decision follows a complaint from an individual, highlighting potential contraventions of the Competition Act, including the abuse of dominant position and entering anti-competitive agreements. RCF reportedly pressured buyers into purchasing non-subsidised products, such as water-soluble fertilisers, alongside the government-subsidised urea.

The CCI, emphasizing the preliminary nature of its observations, has tasked its Director General with conducting an in-depth investigation and delivering findings within 60 days. The Commission expressed concerns over RCF's dominance, accounting for over 42% of Maharashtra's urea supply, potentially leveraging its market position unfairly.

(With inputs from agencies.)