Cabinet Approves PM-PRANAM To Incentivise States To Promote Alternative Fertilizers

It should be noted that in Budget 2023, Nirmala Sitharaman announced the launch of “PM Pranam Yojana” for the promotion of alternative fertilizers and balanced use of chemical fertilizers.

The Cabinet on Wednesday approved a new scheme PM-PRANAM to incentivise states to promote alternative fertilizers, said Fertiliser Minister Mansukh Mandaviya. Under the scheme financial assistance will be given to the states and the states will be able to strengthen the fertilizer system. The government also approved the continuation of the Urea Subsidy Scheme with an outlay of Rs. 3,68,676.7 Crore committed for the urea subsidy for 3 years.

In the next three years, the Modi government will be spending Rs 3 lakh 70 thousand crore for farmers' welfare," Mandaviyaa said at the press meeting after the Cabinet meeting.

It should be noted that in Budget 2023, Union Finance Minister Nirmala Sitharaman announced the launch of “PM Pranam Yojana” for the promotion of alternative fertilizers and balanced use of chemical fertilizers.  Finance Minister in her speech said, “PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth’ (PM Pranam) will be launched to incentivize States and Union Territories to promote alternative fertilizers and balanced use of chemical fertilizers.”

In a statement, the governemt said, the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi approved a unique package of innovative schemes for farmers with a total outlay of Rs 3,70,128.7 crore.

As per the statment apart from PM-PRANAM, the CCEA also approved the continuation of the Urea Subsidy Scheme to ensure constant availability of urea to the farmers at the same price of Rs 242 per 45 kg bag excluding taxes and neam coating charges. Out of the above-approved package, Rs. 3,68,676.7 crore have been committed for urea subsidy for three years (2022-23 to 2024-25).

This is apart from the recently approved Nutrient Based Subsidy of Rs 38,000 Crore for Kharif season for 2023-24. At present, the MRP of urea is Rs 242 per 45 kg bag of urea (exclusive of charges towards neem coating and taxes as applicable), whereas the actual cost of the bag comes to around Rs 2200, the statement said. The scheme is wholly financed by the Government of India through budgetary support. 

Due to the ever-changing geopolitical situation and increased raw material prices, fertilizer prices have been increasing multifold globally over the years. But the government has protected its farmers from steep fertilizer price rises by increasing the fertilizer subsidy. In its endeavor to safeguard our farmers, the government has increased the Fertilizer subsidy from Rs 73,067 crore in 2014-15 to Rs. 2,54,799  crore in 2022-23, the statement said. 

The government also said that by 2025-26, eight nano urea plants with a production capacity of 44 Crore bottles equaling 195 LMT of conventional urea will be commissioned. Nano fertilizer releases nutrients in a controlled manner contributing to higher nutrient use efficiency while costing less to the farmers. 

To be 'Atmanirbhar' In Urea By 2025-26

The government also said that the setting up and revival of 6 urea production units at Chambal Ferti Ltd., Kota Rajasthan, Matix ltd., Panagarh West Bengal, Ramagundam-Telangana, Gorakhpur-UP, Sindri-Jharkhand, and Barauni-Bihar since 2018 the country make "Atmanirbhar in terms of urea production and availability."

"Indigenous production of urea has increased from the level of 225 LMT during 2014-15, to 250 LMT during 2021-22. In 2022-23, production capacity has increased to 284 LMT. These along with Nano Urea Plants will reduce our current import dependency in urea and finally make us self-sufficient by 2025- 26," the government said. 

Additionally, the statement also said that the Rs. 1451.84 crore have been approved for Market Development Assistance (MDA) for promoting organic fertilizers from 'Gobardhan Plants."

Market Development Assistance (MDA) scheme supports the marketing of organic fertilizers produced from Bio-gas Plants/Compressed Biogas (CBG) Plants under the GOBARdhan initiative. Under this scheme, organic fertilizers such as Fermented Organic Manures (FOM), Liquid FOM, and Phosphate Rich Organic Manures (PROM) will be branded as Bharat Brand FOM, LFOM, and PROM.

This initiative aims to address the issue of crop residue management and the problem of burning Parali, while also promoting a clean and safe environment. Additionally, it will provide farmers with an extra source of income, as they can purchase these organic fertilizers at affordable prices.

"This initiative will facilitate implementation of Budget announcement of establishing 500 new waste-to-wealth plants under GOBARdhan scheme for promoting circular economy, by increasing the viability of these BG/CBG plants," the government said. 

The government also announced the promotion of natural farming as a sustainable agricultural practice, which helps restore soil health and reduces input costs for farmers.

So far, 425 Krishi Vigyan Kendras (KVKs) have demonstrated natural farming practices and conducted awareness programs involving around 6.80 lakh farmers. Course curricula for Natural Farming have been developed for BSc and MSc programs, which will be implemented in the upcoming academic session in July-August 2023, the statement said. 

Additionally, a new type of fertilizer called Sulphur coated Urea (Urea Gold) is being introduced. It is more cost-effective and efficient compared to Neem coated urea, and it addresses Sulphur deficiency in the soil. This will save input costs for farmers and increase their incomes through enhanced production and productivity.

Further, to facilitate farmers, approximately one lakh Pradhan Mantri Kisan Samruddhi Kendras (PMKSKs) have been established across the country. These centers serve as a one-stop solution for all the farming needs of the farmers.