Officials said the government will rework the movement plan — from plants to markets — of subsidised fertilisers to avoid long-distance transportation, under the PM Bharat Janurvarak Pariyojna (PMBJP), to cut down its subsidy outgo on logistics and ensure timely availability of fertilisers for farmers.
The ‘PMBJP’ logo and the ‘Bharat’ brand name will be “prominently displayed” on the new fertiliser bags. The bags will display on the top — the actual price, the amount of subsidy per bag borne by the government and the maximum retail price. They will also have the names of the manufacturers and other details, in smaller letter size compared to the logo and the brand name. This will inform people about the government’s financial burden on each bag of fertiliser.
Chemical and fertiliser minister Mansukh Mandaviya told reporters on Saturday, “The main objective of the scheme is to ensure the availability of subsidised fertilisers to farmers when they need it. We also have set the target to reduce the average lead (distance covered for transportation from plant to fertiliser outlets) from the current 700-750 km to 500 km in near future.”
The government expenditure on subsidy for transportation of fertiliser is in the range of Rs 6,000 crore to Rs 9,000 crore. Officials said by minimising the criss-cross movement of fertilisers — such as the movement of NPK of one brand from Maharashtra and Gujarat to West Bengal — the government will significantly reduce its subsidy outgo. “Why should a company manufacturing fertilisers with the same chemical composition in one part of the country sell the product in another end when this demand can be met by a manufacturer who has a plant there? Remember, the government is paying the entire subsidy amount to the companies for each bag sold by them to farmers,” said an official.
Amid concerns of fertiliser companies losing their brands once the ‘Bharat’ initiative is rolled out, the government claimed that the decision to launch the scheme was “firmed up after several rounds of meetings” with the producers. Sources in the fertiliser industry said they have no option but to accept since their business is completely dependent on the government.
An official said, “They have made the brand name and recorded high sales because of the government, which bears the entire subsidy and pays to the companies. When people get fertiliser, the companies get the credit and when they don’t, the government gets a bad name.”
Responding to a question on whether farmers will accept the ‘Bharat’ branding and the product of any company over what they have been using for years, officials said all the fertilisers brands have the same chemical compositions as per the Fertiliser Control Order and they don’t see any trouble. They added “farmers want fertilisers and they will get it”.
What is One Nation One Fertilizer Scheme?
· All products to have single brand name of Bharat – Bharat Urea, Bharat DAP
· Packets to have logo – Pradhanmatri Bhartiya Janurvarak Pariyojna
· 2/3rd of fertilizer bag to have brand name & logo
· 1/3 of bag to have name of fertilizer company
· Bags to mention MRP & subsidy amount borne by Govt
Why the scheme?
· Govt bears entire subsidy: For Urea (80%), DAP (65%), NPKs (55%) & MoP (31%)
· All brands of same fertilizer have nutrient content
· Criss-cross movement of fertilizers due to brand preference
· Average leads (distance) from manufacturing to same: Prior to 2019 (900-100 km), 2019-20 (850-900 km), 2020-21 (700-750 km)
· Faster & timely availability of fertilizers
· Reduction in subsidy on fertilizer transportation, currently pegged in range of Rs 6,000-Rs 9,000 cr
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