The Indian government announced this week that all bags of subsidized fertilizer must bear a label identifying the product under the name Pradhanmantri Bhartiya Januvarak Pariyojna. The name change comes as the government rolls out a campaign called “One Nation, One Fertilizer.”
According to a statement released by the government on August 24, all subsidized fertilizer will now be marked by a single brand – for example, Bharat Urea or Bharat DAP. This new design will take up two-thirds of the 45-kg bags. The remaining one-third of the bags will allow space for the manufacturer’s name and logo.
The new bag designs will be put in use beginning October 1. By the beginning of 2023, only the new design will be allowed, giving companies until the end of the year to use up any old bags.
Because all fertilizers are subsidized to some degree – urea being the most dramatic – all bags of fertilizers delivered to farmers will be in the Bharat bags.
Companies have already complained to the local media. The new design, one producer told a local newspaper, gives very little space to the manufacturer. One analyst also said the companies, whether state-owned or private, will now be relegated to the role of contractor for the Indian government. The uniform look of the bags could also weaken loyalty to a particular manufacturer that has worked to build trust with local distributors and farmers.
Political opposition leaders said the move is designed to promote the ruling party. Supporters of the government responded that when the government spends up to US$25 billion in subsidies and controls where the fertilizers can be shipped, it should get some of the credit with the farmers.
The government could possibly get some blame as well. One analyst told a local newspaper that currently if there is a quality problem with a fertilizer, the individual company gets the blame. Under the new plan, the weight of the problem could fall on the government.