Investigation Ordered: RCF Under Scrutiny for Anti-Competitive Practices

The Competition Commission of India (CCI) has launched an investigation into Rashtriya Chemicals and Fertilizers (RCF) for allegedly forcing dealers and farmers to buy additional products alongside urea. The investigation follows a complaint of anti-competitive practices and abuse of dominant position in Maharashtra.

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.)