The government has introduced new packaging rules for fertiliser companies where they now need to ensure that 2/3rd of the fertiliser bag uses the 'Bharat' logo. This leaves 1/3rd of the bag space open for corporate branding.

Speaking to CNBC-TV18 after the announcement, KS Raju, Chairman of Fertiliser Association of India (FAI) said that transition to new packaging norms for fertilisers will happen quickly, adding that marketing costs will not go up due to this change.

“The bags will be printed in a new way with standardization and it will be done very quickly. The farmers and dealers will get used to it because everybody will be doing the same thing, every company’s brand will be there although in shorter format. Therefore, in distribution model, there should not be a major impact,” he said.

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However, said Raju, there will not be any issue regarding fertiliser product demand in the market.

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Talking about the sector, he said that there will be some working capital issues for fertiliser companies. “Working capital demand from the industry is surely there, but it will get reimbursed,” said Raju.

For the entire interview, watch the accompanying video.