All fertilizers with subsidies to be sold under the same name, "Bharat"

29 Aug 2022 , 07:19 AM

From October, all subsidized fertilizers, including urea and DAP, will be sold under the single brand “Bharat,” in an effort to ensure farmers have timely access to soil nutrients and cut back on the freight subsidy.

Chemicals and Fertilizers Minister Mansukh Mandaviya stated in announcing the new initiative “One Nation One Fertilizer” under the fertilizer subsidy scheme “Pradhanmantri Bhartiya Janurvarak Pariyojna (PMBJP)” that the companies are only allowed to display their name, brand, logo, and other pertinent product information on one-third space of their bags.

He stated that the “Bharat” brand and PMBJP logo must be shown on the remaining two-thirds of the space. The corporations have till the end of the year to get rid of their old stock.

The national government incurred a cost of Rs1.62 lakh crore for fertilizer subsidies during the previous fiscal year. The government’s subsidy cost is anticipated to increase to Rs2.25 lakh crore in the current fiscal due to a significant increase in world prices over the past 5 to 6 months.

Mandaviya stated that the government subsidizes 80% of the retail price of urea, 65% of the retail price of di-ammonium phosphate (DAP), 55% of the retail price of NPKs, and 31% of the retail price of muriate of potash (MoP). Additionally, a freight subsidy of between Rs6,000 and Rs9,000 crore is given each year.

According to the Fertilizer Control Order of 1985, the specifications for fertilisers produced by various businesses are the same across the country, but the products are created and sold under various brands in various states, he said.

According to the minister, there is a crisscross movement of fertilisers across states, which delays the conveyance of soil nutrients and burdens the government with freight subsidy costs.

Farmers can purchase urea and 25 grades of P&K fertilisers from the government at discounted rates through fertiliser importers and producers.

For urea, the Center sets the maximum retail prices and provides a subsidy to cover the gap between those prices and the actual cost of production.

The government announces a fixed amount of subsidy (on Rs per kg basis) for the nutrients nitrogen (N), phosphate (P), potassium (K), and sulphur (S) on an annual basis under the Nutrient Based Subsidy (NBS) scheme, which has been in place since April 2010.

For the various P&K fertilisers covered by the NBS, the subsidy rates per kg for the nutrients N, P, K, and S are converted into per-tonne subsidies.

For feedback and suggestions, write to us at [e-mail]