The Government is planning to launch the PM PRANAM (Promotion of Alternate Nutrients for Agriculture Management Yojana) Scheme to decrease the usage of chemical fertilisers. The scheme aims to encourage balanced usage of biofertilisers and organic fertilisers along with chemical fertilisers, thus reducing subsidy burdens on the latter.
About the PRANAM Scheme
PM PRANAM aims to reduce the mounting subsidy burden on chemical fertilisers, projected to increase by 39% to Rs 2.25 lakh crore in 2022-23 from the 2021 figure of Rs 1.62 lakh crore. The scheme will be financed through the savings from existing fertiliser subsidy schemes run by the Department of Fertilisers, with no separate budget allocation.
50% of these savings will be provided as a grant to states that contribute to this saving. Of this grant, 70% can be utilised for asset creation related to alternate fertilisers adoption and production at various levels. The remaining 30% can be used to reward farmers, NGOs, and others contributing to fertiliser use reduction and awareness generation.
The Need for PRANAM Scheme
Chemical fertilisers are sold to farmers at Maximum Retail Prices (MRP), below their cost of production or import. The price difference is covered by the government as a subsidy, which is passed to manufacturers and importers. This pricing policy imposes substantial burdens on government resources, necessitating the introduction of schemes like PRANAM.
Fertilizer Usage in India: Current Scenario
The expenditure on fertiliser subsidy reached 1.62 lakh crore in 2020-21 and is expected to cross Rs 2.25 lakh crore by 2022. The total requirement for four fertilisers, namely Urea, DAP (Di-ammonium Phosphate), MOP (Muriate of potash), NPKS (Nitrogen, Phosphorus and Potassium), increased by 21% in 2021-22 from the 2017-18 figure.
Government’s Other Initiatives
Several other initiatives have been taken by the government to streamline fertiliser usage and manage subsidy distribution effectively. These include Direct Benefit Transfer, incorporation of new nutrients like Nano urea and “bio-stimulants”, mandatory Neem Coating of Urea, the New Urea Policy (NUP) 2015, and utilising Space Technology for resource mapping in the Fertilizer Sector.
Neem-coated Urea and Its Importance
Neem-coated Urea is a crucial initiative taken by the Department of Fertilizers. Neem has properties that control nitrogen loss at every stage. This process retards nitrate formation, resulting in less available nitrate for denitrification. It aids in mitigating soil degradation, groundwater pollution and air pollution as well.
The launch of the PRANAM Scheme is an important step towards promoting the use of more sustainable and environmentally friendly alternatives to traditional chemical fertilisers. It aligns with the government’s commitment towards sustainable farming practices and a balanced fertiliser usage policy that benefits both the farmers and the economy. While efforts are ongoing to ensure effective implementation and farmer adoption, it represents a significant leap towards achieving a more sustainable agricultural sector in India.