The Centre has approved a new scheme PM-PRANAM to incentivise states to promote alternative fertilisers and reduce the use of chemical fertilisers.
- It also decided to continue the current urea subsidy scheme for three years ending March 2025, with an outlay of ₹3.68 lakh crore.
GS III: Agriculture
Dimensions of the Article:
- Features of the scheme
PM-PRANAM (PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth) is a scheme introduced by the Prime Minister of India.
- Encourage the balanced use of fertilisers by promoting the use of bio fertilisers and organic fertilisers.
- Reduce the subsidy burden on chemical fertilisers, which has been increasing significantly.
- States that adopt alternative fertilisers and reduce the consumption of chemical fertilisers will be incentivised.
- The subsidy amount saved from reducing chemical fertiliser usage will be provided to the states as a subsidy for promoting alternative fertilisers and other development works.
- The Centre will give 50% of the subsidy savings to the states.
- If a state reduces its consumption of conventional fertilisers by 3 lakh tonnes and saves ₹3,000 crore in subsidies.
- The Centre will provide 50% of the subsidy savings, which is ₹1,500 crore, to the state for promoting alternative fertilisers and other development initiatives.
- Encourages the adoption of sustainable and environmentally friendly agricultural practices.
- Reduces the dependency on chemical fertilisers, promoting the use of bio fertilisers and organic fertilisers.
- Helps in reducing the subsidy burden on chemical fertilisers, which has been increasing over the years.
Features of the PM-PRANAM scheme include:
- The scheme will be financed through the savings from existing fertiliser subsidies under schemes administered by the Department of Fertilisers.
- There will be no separate budget allocated for the scheme.
- 50% of the subsidy savings resulting from reduced chemical fertiliser usage will be provided to the state as a grant.
- Asset Creation:
- 70% of the grant received by the state can be utilized for creating assets related to the technological adoption of alternative fertilisers.
- This includes establishing alternate fertiliser production units at the village, block, and district levels.
Incentives and Rewards:
- The remaining 30% of the grant money can be used to reward and encourage farmers, panchayats (village councils), and other stakeholders involved in reducing chemical fertiliser usage and generating awareness about alternative fertilisers.
- The calculation for reducing chemical fertiliser use will compare a state’s increase or decrease in urea consumption in a given year with its average urea consumption over the previous three years.
- This serves as a reference point to assess the reduction in chemical fertiliser usage.
-Source: The Hindu