Come October 1. fertilisers will be sold in the country under a single brand name – Bharat, a move that will enable the government to curb subsidy outgo on the soil nutrients.
According to official sources, the move will also ensure uniformity in the fertiliser supplies and eliminate unhealthy competition among companies.
Under the current system, agents and dealers of the fertiliser companies influence farmers’ purchase decisions while after rolling of one nation, one fertiliser initiative farmers will get quality fertiliser without bothering about the brands.
At present, the subsidy components of various fertilisers sold through 177 manufacturers are 80% for urea , 65% for di-amonimum phosphate, 55% for nitrogen, phosphorus and potassium – NPK and 31% for muriate of potash.
The government had incurred Rs 1.62 trillion under fertiliser subsidy in 2021-22.
In 2020-21, the subsidy was Rs 1.32 trillion which included a freight subsidy of Rs 9,063 crore.
The government’s subsidy bill in the current fiscal is estimated in the range of Rs 2.2 – Rs 2.3 trillion as elevated global prices of fertilisers and natural gas, the key feedstock, have inflated costs.
The varieties of fertilisers will be sold from October 2, under a common brand name – Bharat urea, Bharat DAP, Bharat MOP and Bharat NPK under the fertiliser subsidy scheme ‘Pradhanmantri Bhartiya Janurvarak Pariyojna.
Officials said despite having different brand names for the same fertiliser, nutrient contents remained the same as stipulated under the Fertiliser Control Order 1985. “After the introduction of ‘Bharat’ brand, farmers would not be confused and it would encourage companies to capture local markets thus ensuring timely availability of fertiliser to farmers,” according to an official.
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Officially fertiliser manufacturers are yet to respond to the move to do away with selling of fertiliser under multiple brands, an official with a unit told FE that the move could dilute brand valuation of the companies.
However, the ministry’s last week’s notification states that manufacturers are allowed to display their name, brand, logo and other relevant product information on one-third space of their bags
The movement of fertilisers across states causes delays in the transportation of soil nutrients, while pushing up freight subsidy burden for the government, the note stated.
Officials say that there are several fertiliser units located in the western part of the country that market their products in the eastern region while units in the north supply fertiliser to western and southern regions.
The government released the fertiliser subsidy to manufacturers, which sold their produce to farmers through their retail chains. Since the introduction of the direct benefit transfer system in October 2016, fertiliser subsidies have been released to companies on the basis of sales made by the retailers to farmers.
Sale of all subsidised fertiliser to farmers or buyers is currently made through point of sale (PoS) devices installed at outlets since March 2018 and beneficiaries are identified through Aadhaar number, Kisan Credit Card and other documents.
