[Answered] Evaluate the Impact of the One Nation One Fertiliser Scheme on India’s Agricultural Sector. Discuss how the scheme’s implementation affects the cost of agricultural production, the quality of fertilizers, and the overall productivity of the agricultural sector.

Under the fertilizer subsidy scheme known as Pradhanmantri Bhartiya Janurvarak Pariyojna (PMBJP), the Ministry of Chemicals and Fertilizers has declared that it has decided to adopt One Nation One Fertilizer by introducing a “Single Brand for Fertilizers and Logo”. According to ONOF, businesses may only use one-third of a bag’s space to show their name, trademark, logo, and other pertinent product details. In the remaining two-thirds of the space, the Pradhanmantri Bharatiya Janurvarak Pariyojana logo and the “Bharat” brand must be displayed.

Impact of ONOF on the agricultural sector

• Affordability: The program will guarantee farmers access to reasonably priced, high-quality Bharat brand fertilizer. Fertilizer prices will drop as a result of this plan, and their supply will rise.
• Impact on productivity: If not implemented effectively, centralization could lead to bureaucratic delays and issues in the supply chain, affecting the timely availability of fertilizers. This could impact farmers’ planting schedules and, consequently, the overall production cycle.

Impact on cost of production

• Potential reduction in freight expenses: By reducing the movement of fertilizers across national borders, ONOF seeks to optimize logistics, which could result in a decrease in freight subsidies and distribution costs. Farmers may be able to save money as a result of this, particularly in isolated places.
• Standardization and competition: By doing away with brand distinction, ONOF may spur more manufacturer rivalry, which could result in lower prices. There are worries, meanwhile, that there may be less motivation for new ideas and the creation of specialty fertilizers that are suited to particular soil types.

Impact on fertilizer quality

• Standardized quality control: By requiring all “Bharat”-branded fertilizers to adhere to stringent quality standards, the program may be able to guarantee uniform quality for farmers all over the country.
• Possibility of dilution of brand reputation: Since every brand uses the same emblem, there are worries that the reputation for the quality of each manufacturer may be compromised. Establishing confidence in the ‘Bharat brand will require upholding excellent standards everywhere.

Impact on Productivity

• Accessibility and availability: ONOF seeks to enhance the accessibility of fertilizer, particularly in isolated regions, which may enhance agricultural output. Ensuring effective and timely delivery is still difficult, though.
• Improved soil health and crop yields: Ensuring quality and proper use of fertilizers can contribute to improved soil health and potentially lead to higher crop yields. However, this depends on factors like irrigation, pest management, and the adoption of optimal farming practices.

Conclusion

Various stakeholders have been calling for reforms in the fertilizer sector to reduce the huge subsidy bill and maintain a nutrient balance in fertilizers containing nitrogen, phosphorus, and potassium (N, P, and K), which is currently skewed in the direction of urea. Experts thus call for Direct Benefit Transfer (DBT) to farmers and decontrolling the price of fertilizers, so that the system empowers farmers by giving them a range of choices and motivates manufacturers to make better products.