PM-PRANAM, or Promotion of Alternate Nutrients for Agriculture Management, is a central scheme aimed at encouraging States and Union Territories to reduce dependence on chemical fertilisers and shift towards sustainable farming practices. The scheme links financial incentives to lower consumption of fertilisers such as urea, DAP, NPK and MOP compared with the average use in the previous three years.
Scheme Objective and Funding Pattern
PM-PRANAM provides incentives to States and Union Territories that cut chemical fertiliser use in a financial year. The incentive is fixed at 50% of the fertiliser subsidy saved due to reduced consumption. The scheme is funded through savings in the fertiliser subsidy bill. This makes the programme fiscally linked to improved nutrient management and lower input intensity in agriculture.
Allocation and Utilisation of Grants
Under the scheme design, 95% of the incentive grant is given to the concerned State or Union Territory. The remaining 5% is reserved for monitoring, Information, Education and Communication activities, research, capacity building and reward-related purposes. States and Union Territories must submit annual Action Plans at the beginning of each financial year. They must also furnish Utilisation Certificates after the year ends. Future grants depend on proper use of earlier funds.
Promoting Sustainable Agricultural Practices
PM-PRANAM supports a wider shift towards eco-friendly farming. It encourages:
- Use of organic, bio and nano fertilisers.
- Natural and organic farming practices.
- Resource conservation methods such as micro-irrigation and zero tillage.
- Integrated Nutrient Management for soil fertility and balanced plant nutrition.
The scheme also seeks to leverage existing programmes such as Paramparagat Krishi Vikas Yojana, Mission Organic Value Chain Development for North Eastern Region and the National Mission on Natural Farming.
Related Scheme Progress and Current Status
The government has reported coverage under related schemes. Under PKVY, 18.84 lakh hectares have been covered and 33.93 lakh farmers have benefited since 2015–16. Under MOVCDNER, 2.36 lakh hectares have been covered and 2.70 lakh farmers have benefited since 2015–16. Under the National Mission on Natural Farming, 8.57 lakh hectares have been covered and 17.45 lakh farmers have been enrolled. No incentives have been disbursed yet under PM-PRANAM to any State or Union Territory.
Last Modified: April 29, 2026