Marketing time's up for India's fertiliser brands

A new scheme launched in India this week will see all subsidised fertilisers marketed under a single brand “Bharat”.

What’s happening

Under the government’s One Nation One Fertiliser initiative announced Monday, all subsidised soil nutrients, including urea, diammonium phosphate, potash and NPK, will be marketed under the single brand Bharat across the nation, Mint reports. There will be a common branded bag design, e.g. Bharat urea, Bharat NPK etc., and the expectation is that the scheme will maximise fertiliser availability.

Why it matters

The marketing efforts of fertiliser companies will take a hit since the rationale behind the programme is that there is no product differentiation between brands – all must meet the nutrient-content specifications of the Fertiliser Control Order (FCO). As a result, farmers will no longer make choices based on brands’ marketing activities. 

Greater supply chain efficiency? 

Mint further notes that brand preferences can lead to delays in the supply of fertilisers when products are moved around the country. The government anticipates that the One Nation One Fertiliser scheme will prevent the criss-cross movement of fertilisers and reduce high freight subsidies.

Sourced from Mint