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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.
