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.