‘One Nation One Fertiliser’

GS Paper 3

Syllabus: Indian Agriculture

Context: To bring about uniformity in fertiliser brands across the country, the government issued an order directing all companies to sell their products under a single brand name of ‘Bharat’.

About the order:

- - All fertiliser bags, whether containing urea or di-ammonium phosphate (DAP) or muriate of potash (MOP) or NPK will sport the brand name ‘Bharat Urea’, ‘Bharat DAP’, ‘Bharat MOP’ and ‘Bharat NPK’ irrespective of the company that manufacturers (private or public)
  - A single brand name and the logo of Pradhan Mantri Bhartiya Janurvarak Pariyojana (PMBJP) will have to be displayed on the bag.
    - The central government grants subsidies annually to the fertiliser companies und PMBJP

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.
    - Companies cannot avail subsidy if they sell at MRPs higher than indicated by the government.
  - Through the Fertiliser (Movement) Control Order, 1973 the government also decides where they can sell.
  - Taking Credit: When the government is spending vast sums of money on fertiliser subsidies, deciding where and at what price companies can sell, they would want to take credit and send that message to farmers.

Drawbacks of the scheme:

- - It will disincentivisefertiliser companies from undertaking marketing and brand promotion activities.
  - Currently, in case of any bag or batch of fertilisers not meeting the required standards, the blame is put on the company. But now, that may be passed on fully to the government.