One Nation One Fertiliser plan under ‘Bharat’ brand from October: Mandaviya

New Delhi: One Nation, One Fertiliser (ONOF) programme will be implemented across the country from October starting with urea and later crop nutrients di-ammonium phosphate (DAP) or muriate of potash (MOP) will be sold under a single brand name, `Bharat`, Union Minister for Chemical and Fertilisers Mansukh Mandaviya said on Saturday (August 27, 2022).

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

Following 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 as `Bharat Urea`, `Bharat DAP`, `Bharat MOP` and `Bharat NPK` irrespective of the company that manufacturers it, whether in the public or the private sector.

In an informal interaction with media persons, Mandaviya said that One Nation One Fertiliser would stop crisscross movement of fertilisers for longer distances. It will reduce logistics cost and also ensure the availability of fertilizers to the farmers throughout the year. This concept will strengthen to monitor real-time movement, availability, sales of fertilizers in a state. ONOF will streamline the supply process without bottlenecks, reduces subsidy burden in terms of higher freight charges and increasing the availability basket, he said. 

Elaborating the crisscross movement of fertiliser, Minister said that crisscross movement of fertiliser is due to brand preferences.

IFFCO/KRIBHCO produces their fertiliser products in Uttar Pradesh and distribute it in Rajasthan and CFCL produces their fertiliser products in Rajasthan and distribute it in Uttar Pradesh. Rasthtriya Chemicals and Fertilisers produce NPK in Maharashtra and distribute or sale it in West Bengal. NPK from IFFCO Gujarat plant goes to West Bengal and this leads to loss of time, money and some times crops.

Prior to 2019 average leads (Fertilizer movement from factory to market) over the years was around 900-1000 KM which come down to 850-900 KM during 2019-2020 and further came down to 700 to 750 KM during 2020-2021.

We are aiming to bring it down to 500 KM this year. This will bring the freight subsidy down further. On average during 2019-2020 govt was paying a freight subsidy for the movement of fertilisers of Rs 19.03 crore per lakh metric ton(LMT) which came down to Rs 11.59 crore in 2020-2021, he said. 

Minister said that under ONOF the specifications of fertilisers are same as per FCO-1985 across the nation despite of their brand. After introduction of “Bharat” brand under One Nation One Fertiliser, farmers would not be confused to choose the brand. It will also encourage capturing the local market by selling Fertilisers by Companies and would lead to timely availability of fertilisers to the farmers.

Minister clarified that under ONOF the selling agent or dealers are the main opinion makers to sell the brand-based fertilisers to farmers to get additional benefits from the companies. Under One Nation One Fertiliser, farmers cannot be influenced by the selling agents. Finally, farmers will concentrate on fertilisers, not on company-based brands, he added.