Unproductive fertiliser policy

Source– The post is based on the article “Unproductive fertiliser policy” published in the Business Standard on 7th September 2022.

Syllabus: GS-3 – Agriculture

News-The article explains about the issues related to the “one nation, one fertiliser policy”. The new policy mandates fertiliser product of different companies to be marketed under single brand name of “Bharat”.

What are the issues related to the new fertiliser policy?

Although all fertilisers carry a subsidy of almost 80 to 90%, it does not justify government claims to their brand value.

First, it denies opportunities to companies to create their own market space through brand promotion.

Second, it impinges upon farmer rights to buy the fertiliser of their choice.

Third, it is unclear whether this step conforms to provision of law concerning brands and trademarks.

Fourth, it creates disincentive for fertiliser companies to take up field programmes to introduce efficient methods of nutrient application as part of their market promotion activities.

Fifth, the instructions to the fertiliser company to carry on bags the logo of the new scheme called PM Bhartiya Janurvarak Pariyojna has political connotations.

What are the government arguments in support of policy?

Present system results in higher subsidy outgo, especially the freight subsidy by encouraging criss-cross movement of fertiliser from one state to another.

But the argument is flawed as the Fertiliser Control Order,1985 has enough provisions to curb such practices.

What should be done?

It should provide direct subsidies to farmers. The database and infrastructure for direct benefit transfer already exist with the government. The government should not further mess up with fertiliser sector.