To bring about uniformity in fertiliser brands across the country, the Ministry of Chemicals and Fertilisers on August 24 issued an order directing all companies to sell their products under a single brand name of ‘Bharat’.
Key highlights
- The Government will now implement One Nation One Fertiliser by introducing a “Single Brand for Fertilisers and Logo” under the fertiliser subsidy scheme named “Pradhanmantri Bhartiya Janurvarak Pariyojna” (PMBJP).
- Post the order, all fertiliser bags whether consisting of Urea or DiAmmonia Phosphate or Muriate of Potash or NPK will sport the brand name as ‘Bharat Urea’, ‘Bharat DAP’, ‘Bharat MOP’ and ‘Bharat NPK’ irrespective of the firm which manufacturers it whether in the public or the private sector.
- Under the new “One Nation One Fertiliser” scheme, companies are allowed to display their name, brand, logo and other relevant product information only on one-third space of their bags.
- On the remaining two-thirds space, the “Bharat” brand and Pradhanmantri Bharatiya Jan Urvarak Pariyojana logo will have to be shown.
Government’s argument for introducing this scheme:
- The maximum retail price of urea is currently fixed by the government, which compensates companies for the higher cost of manufacturing or imports incurred by them.
- The maximum retail prices of non-urea fertilisers are decontrolled. But companies cannot avail of subsidy if they sell at MRPs higher than that informally indicated by the government. There are some 26 fertilisers (inclusive of urea), on which government bears subsidy and also effectively decides the MRPs;
- The centre also decides where they can sell. This is done through the Fertiliser (Movement) Control Order, 1973. Under this, the department of fertilisers draws an agreed monthly supply plan on all subsidised fertilisers in consultation with manufacturers and importers.
About Fertilizer subsidy
- The Central Government spends about Rs 80,000 crore on subsidies for chemical fertilisers every year.
- With the increase in subsidy in DAP, Government of India will spend an additional Rs 14,775 crore as subsidy in Kharif season.
- Farmers buy fertilisers at MRPs (maximum retail price) below their normal supply-and-demand-based market rates or what it costs to produce/import them. The MRP of neem-coated urea, for instance, is fixed by the government.
- The MRPs of non-urea fertilisers including DAP are decontrolled or fixed by the companies.
- The Centre, however, pays a flat per-tonne subsidy on these nutrients to ensure they are priced at “reasonable levels.”
(Source: BS)
