Context: With the aim to reduce the use of chemical fertilisers in agriculture, the Centre plans to launch a scheme called the PM Promotion of Alternate Nutrients for Agriculture Management Yojana or PM PRANAM, which will incentivise the states.

Background

• In order to promote the balanced use of fertilisers or alternative fertilisers, the government plans to introduce the PM PRANAM scheme.

• The Ministry of Chemicals and Fertilisers mooted the idea of the PM-PRANAM scheme and its top officials discussed the details with state government officials during the National Conference on Agriculture for Rabi Campaign on September 7. 

• The Centre has sought suggestions on the features of the proposed scheme from the states. At the same time, the ministry has also initiated inter-ministerial discussions on the proposed scheme. The draft of the PM PRANAM scheme will be finalised after incorporating the views of all concerned departments.

Key Points

• On the back of the sharp increase in overall fertiliser use in the last five years, the government is planning to launch the PM PRANAM scheme that will pass on 50 percent of subsidy savings as a grant to the state that saves the money. 

• Of this, the state needs to use 70 percent on creating assets that would lead to technological adoption in alternate fertilisers and alternate fertiliser production units at district levels, blocks and villages.

• The states can use the remaining 30 percent to reward and encourage farmers, panchayats, farmer producer organisations and self-help groups involved in generating awareness and helping in reducing the use of fertiliser.

PM PRANAM scheme

• PM PRANAM is short for PM Promotion of Alternate Nutrients for Agriculture Management Yojana.

• Under this the government provides subsidies to cushion farmers from high prices that rose due to the spike in global prices of fertilisers.

The scheme aims to:

• to reduce the use of chemical fertilisers

• to bring down the subsidy burden on chemical fertilisers, which is estimated to reach Rs 2.25 lakh crore in 2022-23 — 39 per cent higher than last year’s figure of Rs 1.62 lakh crore.

• The move is in line with the government’s focus on promoting a balanced use of fertilisers or alternative fertilisers in the last few years.

Note: There will be no separate budget for the PM PRANAM scheme. It will be financed through the “savings of existing fertiliser subsidy” provided by the department of fertilisers under various schemes.

About Indian Fertilizer Sector

• Indian soils are generally deficient in nitrogen, phosphorus, and potassium and do not give high yields. Hence, the need for fertilizers. 

• Green Revolution (Use of chemical fertilizers was one component) has made a significant impact on Indian agriculture. 

• Thus, India was able to achieve self-sufficiency in food production.

• India is among the world’s 4th largest buyers of fertiliser, besides China, Brazil, and the US.

• India imports four types of fertilisers: Urea; diammonium phosphate (DAP); muriate of potash (MOP) and nitrogen-phosphorous-potassium (NPK)

Important Government Initiatives and Schemes

• “One Nation One Fertiliser” scheme: The scheme would be done by introducing a “Single Brand for Fertilisers and Logo” under the fertiliser subsidy scheme named “Pradhanmantri Bhartiya Janurvarak Pariyojna” (PMBJP).

• The scheme would extend to all four fertilisers – Urea, Di-Ammonium Phosphate, Muriate of Potash and complex NPK – with BHARAT pre-fixed.

• Neem Coating of Urea: The Department of Fertilizers (DoF) has made it mandatory for all the domestic producers to produce 100% urea as Neem Coated Urea (NCU).

New Urea Policy (NUP) 2015: Objectives of the policy are-

• To maximize indigenous urea production.

• To promote energy efficiency in the urea units.

• To rationalize the subsidy burden on the Government of India.