PM PRANAM SCHEME

PM PRANAM SCHEME

Why in news?

• The recent approval of PM PRANAM (Program for Restoration, Awareness, Generation, Nourishment and Amelioration of Mother earth) by CCEA (Cabinet Committee on Economic Affairs) has been in news all the way round.
• Government has announced “PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth” (PM-PRANAM) scheme in Budget 2023-24 with the objective to incentivise the States and UTs to promote usage of alternative fertilizers and balanced use of chemical fertilizers.
• It is covered by the Union Minister of Agriculture and Farmers Welfare.

AIM OF THE SCHEME

• It aims to bring reduction in the use of chemical fertilisers by providing incentives to the states.
• It highlights that the states who are going to adopt the alternative fertilisers will be incentivised with a proper subsidy saved by the reduction of the use of such harmful chemical fertilisers.
• It will henceforth encourage the proper and balanced use of fertilisers to produce crops by merging them with the use of bio-fertilisers and organic fertilisers.

PROVISIONS CONTAINED IN THE SCHEME

• The provisions contain the incentivisation of states who allow the maximum use of alternative fertilisers in the process of farming and producing surplus crops.
• It does not have a separate budget but will be financed by the savings of existing fertiliser subsidies under schemes. Out of the given grant, 70% can be used to create assets for technological adoption of alternate fertilisers and alternate fertiliser production units at the village level, block level, and district levels.
• The remaining 30% of this grant can be used to reward and motivate the farmers, panchayats, and other stakeholders involved in fertiliser reduction and awareness generation.

WHY DO WE NEED SUCH SCHEME?

• The biggest motive behind inculcating such scheme is to reduce the burden of subsidy on the government.
• The MRPs of urea fertilisers are decontrolled or fixed by the companies but the Centre pays a flat per-tonne subsidy on these nutrients to ensure reasonable prices which makes it difficult for the government sometimes to cope with.

OTHER RELATED PROVISIONS

1. NUP – New Urea Policy 2015 Objectives are to maximise Indigenously built urea production, to promote energy efficiency in the urea units and to rationalize the subsidy burden on the Government of India.
2. NEEM COATING OF UREA – It has been made mandatory for all the domestic producers by the department of fertilisers to produce 100% Neem Coated Ureas.
3. Incorporations of new nutrients like NANO urea and Bio-Stimulants in the Fertiliser Control Order – 1985 (FCO)