News Highlight
On Monday, Prime Minister Narendra Modi inaugurated 600 Kisan Samridhi Kendras and the “One Nation, One Fertilizer’ scheme.
Key Takeaway
- The Prime Minister said that these steps were being taken to modernise agriculture.
One Nation, One Fertilizer scheme.
- About
- Under the One Nation, One Fertilizer scheme (Pradhanmantri Bhartiya Janurvarak Pariyojna), 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 of space, the “Bharat” brand and Pradhanmantri Bharatiya Jan Urvarak Pariyojana logo will have to be shown.
- Features:
- 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.
Kisan Samridhi Kendras
- About
- Prime Minister Narendra Modi on Monday inaugurated 600 Pradhan Mantri Kisan Samruddhi Kendras (PMKSK) under the Ministry of Chemicals & Fertilisers.
- Objectives:
- These will be centres where farmers can buy fertilisers and seeds, implement soil testing, and provide useful information about farming techniques.
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 Hindu