”One Nation, One Fertilizer Scheme”: Pradhan Mantri Bhartiya Jan Urvarak Pariyojana

”One Nation, One Fertilizer Scheme”: Relevance for UPSC

GS 2: Government Policies & Interventions
GS 3: Direct & Indirect Farm Subsidies

”One Nation, One Fertilizer Scheme”: Why in news?

• During the two-day event PM Kisan Samman Sammelan 2022, Prime Minister launched Pradhan Mantri Bhartiya Jan Urvarak Pariyojana – One Nation One Fertiliser on October 17, 2022.
• Under the scheme, Prime Minister will launch Bharat Urea Bags, which will help companies market fertilisers under the single brand name ‘Bharat’.

”One Nation, One Fertilizer Scheme”: What is the ‘One Nation One Fertiliser’ scheme?

• Under the scheme, all fertiliser companies, State Trading Entities (STEs) and Fertiliser Marketing Entities (FMEs) will be required to use a single “Bharat” brand for fertilisers and logo under the PMBJP.
• All subsidised soil nutrients – urea, di-ammonium phosphate (DAP), Muriate of Potash (MoP), and NPK – will be marketed under the single brand Bharat across the nation.
• With the launch of this scheme, India will have a common bag design across the country like Bharat urea, Bharat DAP, Bharat MOP, Bharat NPK, and so on.
• The new “Bharat” brand name and PMBJP logo will cover two-thirds of the front of the fertiliser packet
• The manufacturing brands can only display their name, logo, and other information on the remaining one-third space.

”One Nation, One Fertilizer Scheme”: Why did the government introduce this scheme?

The government introduced a single ‘Bharat’ brand for all subsidised fertilisers because:

(1) There are some 26 fertilisers (inclusive of urea), on which government bears subsidy and also effectively decides the MRPs.
(2) Apart from subsidising and deciding at what price companies can sell, the government also decides where they can sell. This is done through the Fertiliser (Movement) Control Order, 1973.
(3) When the government is spending vast sums of money on fertiliser subsidy (the bill is likely to cross Rs 200,000 crore in 2022-23), plus deciding where and at what price companies can sell, it would obviously want to take credit and send that message to farmers.

”One Nation, One Fertilizer Scheme”: How will the One Nation One Fertilizer Scheme help farmers?

• The rationale behind bringing One Nation One Fertilizer Scheme is that since fertilizers of a particular category must meet the nutrient-content specifications of the Fertilizer Control Order (FCO), there is no product differentiation among different brands for each type of fertilizer. For example, DAP should have the same nutrient content, whether it is produced by one company or another.
• So the concept of ‘One Nation, One Fertiliser’ will help farmers overcome their confusion over brand-specific choices, as all DAP fertilizer brands must have 18% nitrogen and 46% phosphorus.
• Farmers are generally unaware of this fact and prefer certain brands as a result of vigorous marketing strategies adopted by firms with strong retailer networks developed over time.
• It has been found that such brand preferences have resulted in fertilizer-supply delays to farmers and an extra burden on the exchequer due to increased freight subsidies needing to be paid for the long-distance crisscross movement of fertilizers.
• The One Nation One Fertiliser scheme will prevent the criss-cross movement of fertilisers and reduce high freight subsidies.

”One Nation, One Fertilizer Scheme”: PM Kisan Samruddhi Kendras (PM-KSK)

• Yesterday the PM also inaugurated 600 PM Kisan Samruddhi Kendras (PM-KSK) that will act as a one-stop-shop for farmers who can buy products and avail of multiple services related to the agriculture sector.
• The PM-KSK will supply agri-inputs like seeds, fertilisers, and farm implements.
• It will also provide testing facilities for soil, seeds and fertilisers. Information about government schemes will also be provided.
• The Centre also intends to convert more than 3.3 lakh fertiliser retail shops in the country into PM- Kisan Samruddhi Kendras (PM-KSK) in a phased manner.

”One Nation, One Fertilizer Scheme”: Possible drawbacks of the scheme

• It will disincentivise fertiliser companies from undertaking marketing and brand promotion activities.
• They will now be reduced to contract manufacturers and importers for the government.
• Currently, in case of any bag or batch of fertilisers not meeting the required standards, the blame is put on the company. But now, that may be passed on fully to the government.

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