PM PRANAM

In news–In order to reduce the use of chemical fertilisers by incentivising states, the Union government plans to introduce a new scheme called PM PRANAM.

Key features of the scheme-

PM PRANAM stands for PM Promotion of Alternate Nutrients for Agriculture Management Yojana.
The proposed scheme intends to reduce the subsidy burden on chemical fertilisers, which is expected to increase to Rs 2.25 lakh crore in 2022-2023, which is 39% higher than the previous year’s figure of Rs 1.62 lakh crore.
The scheme will not have a separate budget and will be financed by the “savings of existing fertiliser subsidy” under schemes run by the Department of fertilisers.
Further, 50% subsidy savings will be passed on as a grant to the state that saves the money, and that 70% of the grant provided under the scheme can be used for asset creation related to technological adoption of alternate fertilisers and alternate fertiliser production units at village, block and district levels.
The remaining 30% grant money can be used for incentivising farmers, panchayats, farmer producer organisations and self-help groups that are involved in the reduction of fertiliser use and awareness generation.
The government will compare a state’s increase or reduction in urea in a year, to its average consumption of urea during the last three years.
Data available on a fertiliser Ministry dashboard, iFMS (Integrated fertilisers Management System), will be used for this purpose.