PM-PRANAM [Govt Schemes for UPSC]

The government has launched the PM PRANAM scheme to make judicious utilisation of fertilisers in the agriculture sector. In this article, you can read all about the PM-PRANAM scheme for the UPSC exam. Government schemes are an important component of the UPSC Syllabus.

PM-PRANAM

In order to enhance the productivity of agriculture in general and crops in particular, it is necessary to administer them with sufficient nutrients so that they can grow properly. But, over a period of time, due to subsidies on fertiliser and lack of awareness among the farmers, there has been over-exploitation of fertilisers resulting in soil erosion, rising salinity, and a fall in overall productivity.

PM-PRANAM Scheme Features

PM PRANAM is the short form for PM Promotion of Alternate Nutrients for Agriculture Management Yojana.

• The basic objective of the scheme is to incentivise the farmers to reduce the overall consumption of fertilisers by incentivising the states through the creation of a proper environment.
• The upcoming scheme aims to reduce overall expenditure on chemical fertilisers, which is expected to increase to Rs 2.25 lakh crore in 2022-2023 (39% higher than the 2021 figure of Rs 1.62 lakh crore).
• This scheme is not supposed to outlay a different budget for fertiliser rationalisation, rather “savings of existing fertiliser subsidy” will be utilised for financing this scheme run by the Department of Fertilisers.
• 50% of the subsidy savings will be passed to the state as a grant. 
  • 70% of such funds bestowed to the state can be utilised for the purpose of capacity expansion in the area of creating alternative fertilisers and alternate fertiliser production units at the village, block and district levels. 
  • The remaining 30% of grant money can be utilised for encouraging farmers, panchayats, farmer producer organisations and self-help groups that are involved in the reduction of fertiliser use and awareness generation.
• The government will evaluate the total utilisation of fertilisers in terms of increase or decrease in overall consumption in a year vis-a-vis consumption in the last three years. 
• iFMS (Integrated Fertilisers Management System), a platform is envisaged with the intention to track the use of fertilisers. 

Why was PM-PRANAM launched?

There has been an abrupt rise in the fertiliser subsidy in the last five years, which has subsequently raised the government expenditure. 

• Out of all fertilisers put to use, consumption of four fertilisers i.e Urea, DI-ammonium phosphate, muriate of potash and NPKS rose by 21% between 2017-2018 and 2021-22 from 528.86 lakh metric tonnes (LMT) to 640.27 LMT. 
  • In the Union Budget 2021-22, the government had allocated Rs 79,530 crore, which rose to Rs 1.40 lakh crore in the revised estimates. However, the final figure for fertiliser subsidy crossed rupees 1.62 lakh crore in 2021-22.
  • In the current financial year (2022-23), the government has allocated Rs 1.05 lakh crore, but the Fertiliser Minister has stated that the fertiliser subsidy figure could cross Rs 2.25 lakh crore during this year. 

Conclusion: Judicious use of fertilisers is very important not only for the economy but also from the environmental perspective. It is therefore very important to ensure that fertilisers are put to effective use after taking stock of various situations.

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