India to introduce 'One Nation, One Fertiliser' from October 2
New Delhi: India will introduce 'One Nation, One Fertiliser' from October 2 – coinciding with Mahatma Gandhi's birthday – where all fertiliser bags would have bar codes to track its 'real time' movement in order to stop their diversion for industrial purposes and minimise freight subsidy.
An official memorandum issued by Department of Fertilisers on Wednesday said "Fertiliser Companies are advised not to procure old designed bags with effect from 15 September 2022. The new bags under One Nation One Fertiliser concept will be introduced with effect from 2nd October 2022." "A lead time of four months i.e. up to 31 December 2022 has been given to exhaust old designed bags from the market," it added.
The OM said the scheme would extend to all four fertilisers – Urea, Di-Ammonium Phosphate, Muriate of Potash and complex NPK – with BHARAT pre-fixed. The single brand name would be applicable for all fertiliser companies, state trading entities and marketing entities.
The government had planned to launch the scheme from 15 August 2022 initially with imported urea.
"A logo indicating fertiliser subsidy scheme namely Pradhanmantri Bhartiya Janurvarak Pariyojna (PBJP) will be used on the said fertiliser bags," it said.
Two-thirds of the bag would be used for new brand name and logo with PBJP and one-third will be used for name of the manufacturer/importer, name of the product, brand name, subsidy paid by the government, nutrient specification, date of manufacturing and import.
The scheme's objective is to stop crisscross movement of fertilisers, specially urea, which leads to its diversion for industrial purposes. All bags will be bar-coded for reading machines linked with POS machines. A fertiliser company will be eligible for subsidy under direct benefit transfer only when the bag is sold through bar code reading machines via Point of Sale machine.
Fertiliser sector is highly subsidised area wherein the maximum retail price is fixed for urea and subsidy is fixed for non-nitrogenous fertiliser phosphate and potassium (P and K). Nearly 80 per cent of the cost of production of urea and P&K is being paid to fertilisers manufacturers in the form of central government subsidy.
As for freight subsidy, about Rs 3,038 crore per annum for urea and Rs 3,300 crore per annum for P&K would be paid out this fiscal year.
Brand-wise demand of fertilisers in specific areas by farmers is one of the reasons of crisscross movement of fertilisers. Since fertiliser companies get the freight subsidy, they do not hesitate moving bags a longer distance.
