Context: Recently, the Cabinet has approved the PM-PRANAM scheme to incentivize states in promoting alternative fertilizers.

• This scheme, announced in the budget for 2023-24, reflects the government’s commitment to sustainable agricultural practices and the conservation of natural resources.

PM-PRANAM Scheme

• PM-PRANAM stands for Prime Minister Promotion of Alternate Nutrients for Agriculture Management Yojana.

• The scheme was proposed during the National Conference on Agriculture for Rabi Campaign in September 2022.

• The PM-PRANAM scheme is a step towards promoting sustainable a griculture and reducing the dependency on chemical fertilizers.

• By incentivizing the adoption of alternative fertilizers and encouraging responsible fertilizer usage, the scheme aims to protect the environment and ensure the longterm health of the agricultural sector.

Notable features of the scheme

• Incentivizing States and UTs: The scheme incentivizes states and Union Territories to promote the usage of alternative fertilizers and achieve a balanced use of chemical fertilizers. States that demonstrate significant savings in funds due to reduced chemical fertilizer usage receive grants as incentives.

• Subsidy Savings Allocation: Around 50% of the subsidy savings resulting from reduced chemical fertilizer consumption will be allocated as a grant to the state that exhibits the highest savings. This encourages states to actively participate in the adoption of alternative fertilizers.

• Creation of Assets: A significant portion (70%) of the granted funds will be utilized for creating assets associated with the technological integration of alternate fertilizers. This includes establishing production units at the village, block, and district levels, facilitating local production and availability of alternative fertilizers.

• Recognition and Incentives for Farmers: The remaining 30% of the granted funds will be utilized to incentivize and recognize farmers and other village entities for their contributions to reducing fertilizer usage. This recognizes their efforts in adopting sustainable agricultural practices.

• Environmentally Friendly Farming Practices: The scheme aims to promote environmentally friendly farming practices by encouraging the adoption of alternative fertilizers. This reduces the dependency on chemical fertilizers, which in turn contributes to environmental conservation and sustainability.

• Long-term Soil Health and Agricultural Ecosystems: By promoting a balanced use of fertilizers, the scheme ensures the long-term health and fertility of agricultural ecosystems. It emphasizes sustainable agricultural practices that preserve soil health and protect natural resources.

• Technological Integration: The scheme supports the integration of technology into agriculture for the production and utilization of alternative fertilizers. This includes the establishment of production units at the grassroots level, encouraging local production and accessibility of alternative fertilizers.