PM PRANAM SCHEME: States to Get 50% Subsidy in Fertilizer Sector

Recently, in a meeting held between high officials PM- PRANAM Scheme was highlighted. PM PRANAM  or  Promotion of Alternate Nutrients for Agriculture Management Yojana aims at reducing chemical fertilizer subsidies and balancing the application of fertilizer in conjunction with biofertilizers and organic fertilizers. According to the scheme, the state will obtain 50% subsidy savings. These savings will further be applied to create and build new technologies in the fertilizer sector.

AIM

The PM PRANAM scheme aims to alleviate the financial strain caused by the escalating subsidy expenses on chemical fertilizers. It is projected that these expenses will surge to Rs 2.25 lakh crore in the upcoming fiscal year of 2022-2023, representing a substantial 39% increase compared to the preceding year's amount of Rs 1.62 lakh crore. The proposed initiative seeks to address this issue by implementing strategic measures to curb the escalating subsidy burden, thus promoting sustainable and cost-effective agricultural practices.

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 FEATURES & BENEFITS

• The scheme proposes a utilization plan for the subsidy savings, wherein 50% of the savings will be granted to the state which effectively reduces expenditure.

• Subsequently, 70% of the grant allocated through this initiative can be utilized for establishing assets associated with the adoption of advanced fertilizers and the establishment of alternative fertilizer production units at the village, district, and block levels.

• As for the remaining 30% of the grant funds, they can be utilized to provide incentives to farmers, panchayats, farmer-producer organizations, and self-help groups involved in minimizing fertilizer usage and generating awareness.

• Furthermore, the scheme recognizes the significance of bilateral, regional, and global groupings and agreements that involve or impact India's interests.

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NEED

• In the last 5 years, an increase of 21% has been seen for the four essential fertilizers used in the agriculture sector which include:-

1. Urea
2. DAP ( Diammonium Phosphate)
3. NPK (Nitrogen Phosphorus, Potassium)
4. MOP (Muriate of potash)

• According to data the increase took place from 528.86 Lac metric tonnes in 2017-2018 to 640.27 Lac metric tonnes in 2021-2022. Therefore the center has planned to mitigate the intense application of chemical fertilizers, promote alternative fertilizers and benefit a wide range of populations.

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