Table of Contents
PM PRANAM Scheme
- Objective: PM Promotion of Alternate Nutrients for Agriculture Management (PRANAM) Yojana will aim to bring down the subsidy burden on chemical fertilizers.
- Implementation: The idea of the scheme has been initiated by the Union Ministry of Chemicals and Fertilizers.
- Budget: The scheme will not be having a separate budget and will be financed through the savings of existing fertilizer subsidy under schemes run by the Department of Fertilizers.
- Utilization of savings:
- About 50 per cent savings on subsidy will be passed on as a grant to the state that saves the money.
- About 70 per cent of the grant given under the scheme can be used for asset creation related to technological adoption of alternate fertilizers and setting up alternate fertilizer production units at village, block and district levels.
- The 30 per cent remaining grant money can be utilized for rewarding and encouraging farmers, panchayats, farmer producer organizations and self-help groups that are involved in the reduction of fertilizer use and awareness generation.
- Calculating chemical fertilizer use:
- Average consumption: A state’s increase or reduction in urea in a year will be compared to its average consumption of urea during the last three years to calculate chemical fertilizer use.
- Data: The data available on a Fertilizer Ministry dashboard, iFMS (Integrated Fertilizers Management System) will be used to make these comparisons.
Fertilizer Subsidy in India
- Expenditure: India’s expenditure on fertilizer subsidy was 1.27 lakh crore in 2020-21. In the Union Budget 2021-22, the estimated amount was Rs 79,530 crore, which increased to Rs 1.40 lakh crore in the revised estimates (RE). The final fertilizer subsidy reached Rs 1.62 lakh crore in 2021-22.
- The government has allocated Rs 1.05 lakh crore for subsidies in 2022-23. There are chances that figures could cross Rs 2.25 lakh crore during this year.
- Categories: The total requirement of four fertilizers — Urea, DAP (Di-ammonium Phosphate), MOP (Muriate of potash), NPKS (Nitrogen, Phosphorus and Potassium)—increased by 21 per cent in 2021-22.
- DAP has recorded maximum increase (25.44%).
- Urea has recorded an increase of 19.64 per cent in the last five years.
Fertilizer Sector Reforms
- Plugging leaks: Subsidy on various fertilizer grades will be released to the fertilizer companies on the basis of actual sales made by the retailers to the beneficiaries under direct benefit transfer system.
- Balanced use of fertilizers: The scheme is in line with the government’s focus on promoting a balanced use of fertilizers or alternative fertilizers in the last few years.
- New nutrients: New nutrients such as Nano urea and “bio-stimulants” have been added in the Fertilizer Control Order-1985 (FCO).
- Reduce excessive use: Initiatives like Soil Health Card and neem-coated urea have also been taken to ensure controlled use of fertilizers.
Need for Reducing use of Chemical Fertilizers
- Environmental pollution: Excessive use of chemical fertilizers can pollute water bodies. This can lead to algal bloom, affecting aquatic life.
- Soil degradation: Chemical fertilizers can change soil nutrient composition, reduce organic matter and also change pH of the soil. These all events can degrade quality of the soil.
- Global warming: Chemicals released from fertilizers can act as greenhouse gases. These greenhouse gases can further enhance global warming.
- Human health: Excessive exposure to chemical fertilizers can have long term effects on human health in form of cancers and other diseases caused due to DNA damage.
WhatsApp