Cabinet approves PM-PRANAM to incentivise states to promote alternative fertilisers

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a number of fertiliser schemes, including the PM-PRANAM scheme and the Urea Gold scheme, to boost the welfare of farmers and rejuvenate soil productivity.

It also decided to continue the current urea subsidy scheme for three years ending March 2025, with an outlay of Rs 3.68 lakh crore.

Announcing the CCEA decision, Union Chemicals and Fertilisers Minister Mansukh Mandaviya said the CCEA had approved the scheme named PM-PRANAM (PM Programme for Restoration, Awareness, Generation, Nourishment and Amelioration of Mother Earth).

Under the scheme, Mandaviya said the states, which will adopt alternative fertilisers will be incentivised with the subsidy that is saved by cutting down on the use of chemical fertilisers.

Finance Minister Nirmala Sitharaman had announced the scheme during her Budget speech in February.

The CCEA approved the continuation of the urea subsidy scheme to ensure constant availability of urea to the farmers at the same price of Rs 242/45 kg bag excluding taxes and Neem coating charges. Out of the total package, Rs 3,68,676.7 crore has 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 phosphatic and potassic (P&K) fertilisers during the Kharif season of 2023-24.

The CCEA also approved Rs 1,451 crore for market development assistance (MDA) to promote organic fertilisers from Gobardhan plants. Under the scheme, a subsidy of Rs 1,500 per tonne will be provided to support the marketing of organic fertilisers — Fermented Organic Manures (FOM)/Liquid FOM/Phosphate Rich Organic Manures (PROM) produced as by-products from Biogas Plants/Compressed Biogas (CBG) Plants set up under umbrella GOBARdhan initiative.

The Cabinet also introduced sulphur-coated urea (Urea Gold) to address the issue of sulphur deficiency in soil.