“PM PRANAM revolutionizes agriculture by reducing chemical fertilizer usage. Incentivizing States and Union Territories, it promotes sustainable farming practices and alternative fertilizers. With estimated savings of ₹20,000 crore and a projected decrease of 45.78 LMT in fertilizer usage, it paves the way for a greener and more prosperous future.”
Image-: Krishi Jagran
The Union Cabinet is set to approve PM PRANAM (Programme for Restoration, Awareness, Nourishment, and Amelioration of Mother Earth) during its upcoming meeting on Wednesday. This scheme, announced by Finance Minister Nirmala Sitharaman on February 1 as part of the Budget for FY24, aims to reduce the reliance on chemical fertilizers among farmers and alleviate the subsidy burden on the government. The scheme will be implemented for a period of three years and seeks to incentivize States and Union Territories to promote the use of alternative fertilizers while maintaining a balanced approach to chemical fertilizers. It is estimated that the scheme will lead to a reduction of 45.78 LMT (Lakh Metric Tons) in fertilizer usage, resulting in monetary savings of approximately ₹20,000 crore.
The Department of Fertilizers (DOF), in a submission made to the Parliamentary Committee, stated that the scheme is expected to be implemented in the fiscal year 2023-24, pending approval from the Cabinet. The DOF will serve as the sponsoring entity for the scheme, while the Department of Expenditure (DOE) will oversee the administration of funds over the course of three years.
PM PRANAM aims to support the ongoing mass movement initiated by States and Union Territories to preserve the health of the environment by promoting sustainable and balanced usage of chemical fertilizers. The scheme will encourage the adoption of alternative fertilizers such as organic, bio, and nano fertilizers, as well as natural and organic farming practices. Its primary objective is to incentivize States that successfully reduce their consumption of chemical fertilizers and actively promote alternatives. Under the proposed framework, a State or Union Territory that demonstrates a reduction in chemical fertilizer consumption (including Urea, DAP, NPK, and MOP) by 50% compared to the average consumption of the previous three years will be eligible for a grant equal to 50% of the saved fertilizer subsidy for that particular financial year.
For instance, if a State consumed 38 LMT of fertilizers in a given year, while the three-year average consumption stood at 40 LMT, the State would receive a grant equal to 50% of the difference, which amounts to 2 LMT. While 95% of the funds will be allocated to the States, the remaining 5% will be utilized by the DOF to launch information, education, and communication campaigns to promote soil health.
Of the funds allocated to States, 65% will be dedicated to asset creation within the agricultural sector, while the remaining 30% will be utilized for the promotion of organic fertilizers and awareness generation activities.
