Context:
In order to reduce the use of chemical fertilisers by incentivising states, the Union government plans to introduce a new scheme – PM PRANAM, which stands for PM Promotion of Alternate Nutrients for Agriculture Management Yojana.
Relevance:
GS II: Government Policies and Intervention
Dimensions of the Article:
- What is the PM PRANAM scheme?
- Why is the scheme being introduced?
What is the PM PRANAM scheme?
- The proposed scheme intends to reduce the subsidy burden on chemical fertilisers, which is expected to increase to Rs 2.25 lakh crore in 2022-2023, which is 39% higher than the previous year’s figure of Rs 1.62 lakh crore.
- The scheme will not have a separate budget and will be financed by the “savings of existing fertiliser subsidy” under schemes run by the Department of fertilisers.
Subsidies:
- 50% subsidy savings will be passed on as a grant to the state that saves the money,
- 70% of the grant provided under the scheme can be used for asset creation related to technological adoption of alternate fertilisers and alternate fertiliser production units at village, block and district levels.
- The remaining 30% grant money can be used for incentivising farmers, panchayats, farmer producer organisations and self-help groups that are involved in the reduction of fertiliser use and awareness generation.
- The government will compare a state’s increase or reduction in urea in a year, to its average consumption of urea during the last three years.
Why is the scheme being introduced?
- Due to increased demand for fertiliser in the country over the past 5 years, the overall expenditure by the government on subsidy has also increased.
- The total requirement of four fertilisers — Urea, DAP (Di-ammonium Phosphate), MOP (Muriate of potash), NPKS (Nitrogen, Phosphorus and Potassium) — increased by 21% between 2017-2018 and 2021-2022, from 528.86 lakh metric tonnes (LMT) to 640.27 LMT
- In light of the increased demand, the government has also been increasing the subsidies it provides for chemical fertilisers.
- However, the final figure of fertiliser subsidy touched Rs 1.62 lakh crore in 2021-22.
- PM PRANAM, which seeks to reduce the use of chemical fertiliser, will likely reduce the burden on the exchequer.
- The proposed scheme is also in line with the government’s focus on promoting the balanced use of fertilisers or alternative fertilisers in the last few years.
-Source: Indian Express
