News Highlight
All subsidised fertilisers will be sold under a single brand name — “Bharat” — as part of the Centre’s ‘One Nation, One Fertiliser’ initiative.
Key Takeaway
- The initiative aims to ensure a timely supply of fertiliser to farmers, bring uniformity in supply, and reduce the subsidy burden in terms of higher freight charges.
Pradhanmantri Bhartiya Janurvarak Pariyojna (PMBJP).
- Under the new “One Nation, One Fertiliser” scheme, companies can display their name, brand, logo, and other relevant product information only on one-third of their bags.
- On the remaining two-thirds space, the “Bharat” brand and Pradhanmantri Bharatiya Jan Urvarak Pariyojana logo will have to be shown.
- The single brand name for urea, DAP (Diammonium phosphate), MOP (Muriate of Potassium) and NPK, etc. would be Bharat Urea, Bharat DAP, Bharat MOP, and Bharat NPK, etc., respectively, for all fertiliser companies, state trading entities (STEs) and fertiliser marketing entities.
Benefits:
- A single brand name will help reduce freight charges due to stopping the crisscross movement of fertilisers.
- They are reducing the transit time and ensuring the availability of fertilisers throughout the year, irrespective of brand preferences.
Possible Drawbacks
- It will disincentivise fertiliser companies from undertaking marketing and brand promotion activities.
Fertiliser
- A fertiliser is a chemical product, either mined or manufactured material containing one or more essential plant nutrients that are immediately or potentially available in sufficiently good amounts.
Fertiliser Subsidy
- The government subsidises fertiliser producers to make this critical ingredient in agriculture affordable to farmers.
- This allows farmers to buy fertilisers at below-market rates.
- The difference between the cost of production/import of fertiliser and the amount paid by farmers is the subsidy portion the government bears.
- Subsidy on Urea:
- The Centre pays subsidies on urea to fertiliser manufacturers based on the cost of production at each plant, and the units are required to sell the fertiliser at the government-set Maximum Retail Price (MRP).
- Subsidy on Non-Urea Fertilisers:
- The MRPs of non-urea fertilisers 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”.
Content Source: The Indian express