One Nation One Fertilizer

On 24^th August, 2022, the Centre decided to implement One Nation One Fertiliser by introducing a “Single Brand for Fertilisers and Logo” under the fertiliser subsidy scheme named “Pradhanmantri Bhartiya Janurvarak Pariyojna” (PMBJP).

Rationale: The maximum retail price of urea is currently fixed by the government, which compensates companies for the higher cost of manufacturing or imports incurred by them.

• But companies cannot avail of subsidy if they sell at MRPs higher than that informally indicated by the government.
• There are some 26 fertilizers (inclusive of urea), on which government bears subsidy and also effectively decides the MRPs.
• 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.
• Hence, when the government is spending vast sums of money on fertiliser subsidies, it would obviously want to take credit and send that message to farmers.

Impact: The move will help in the reduction of freight charges due to stopping of criss-cross movement of fertilizers. It will help reducing the transit time, ensuring the availability of fertilizers throughout the year irrespective of brand preferences, and stopping the diversion of urea for industrial purposes.