One Nation One Fertiliser

Why in the News?

Recently, the Ministry of Chemicals and Fertilisers announced the implementation of ‘One Nation One Fertiliser’.

Key Points:

• It will introduce a “Single Brand for Fertilisers and Logo” under the fertiliser subsidy scheme named “Pradhanmantri Bhartiya Janurvarak Pariyojna” (PMBJP).
• The single brand name for UREA, DAP, MOP and NPK etc. would be BHARAT UREA, BHARAT DAP, BHARAT MOP and BHARAT NPK etc.
• A logo indicating the Fertiliser subsidy scheme namely PMBJP will be used on fertiliser bags.
• All fertiliser companies, State Trading Entities (STEs) and Fertiliser Marketing Entities (FMEs) will be required to use a single “Bharat” brand for fertilisers.

Government arguments:

• 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 government decides where they can sell. This is done through the Fertilizer (Movement) Control Order, 1973. 
• Government is spending huge money on fertiliser subsidies (200000 lakh crore in 2022-23), it would obviously want to take credit and send that message to farmers.

Challenges:

• It can disincentivize fertiliser companies from undertaking marketing and brand promotion activities. 
• Currently, the blame is put on the company for not meeting the required standards. But now, that may be passed on fully to the government.