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PM-PRANAM (PM Programme for Restorati… — Govt Scheme for UPSC | Vaidra
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PM-PRANAM (PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth)

Ministry of Chemicals and FertilizersactiveAgricultureLaunched: 2023-02-01

About the Scheme

PM-PRANAM incentivises states to reduce use of chemical fertilizers through alternative nutrition management (bio-fertilizers, organic inputs, nano fertilizers). Announced Budget 2023-24. States that save on fertilizer subsidy share 50% of savings as grants for alternative nutrient promotion and organic farming. No separate budget — funded from fertilizer subsidy savings.

Target Beneficiaries: Farmers; fertilizer-intensive states (Punjab, Haryana, UP, Telangana); bio-input manufacturers

Official Website →

✦Key Features

  • States that save fertilizer subsidy get 50% of savings as grants for alternative nutrition
  • Grants can be used for: promoting bio-stimulants, bio-fertilizers, organic farming, Kisan Samman Nidhi type incentives
  • No separate outlay — funded entirely from existing fertilizer subsidy savings
  • Complements nano-urea (IFFCO) and nano-DAP adoption; Namo Drone Didi for aerial application
  • Chemical fertilizer use: India uses 60 kg/ha vs global average 140 kg/ha — but overuse in key states
  • Announced Feb 1, 2023 (Budget 2023-24) by Finance Minister Nirmala Sitharaman

✓Eligibility Criteria

  • Implementing agencies are the State Governments and Union Territories of India.
  • States must demonstrate a quantifiable reduction in the consumption of chemical fertilizers.
  • Beneficiaries are the farming communities within the states that adopt alternative fertilizers.
  • States are evaluated based on the average consumption of chemical fertilizers over the previous three years.

★Benefits

  • Systemic outcomes include the promotion of balanced use of chemical fertilizers and bio-fertilizers.
  • Financial grant equivalent to 50% of the fertilizer subsidy saved by the state is provided as an incentive.
  • Funding for the creation of assets related to the adoption of organic and alternative fertilizers.
  • Technological interventions at the village/block level to improve soil health and fertility.
  • Awareness generation among farmers regarding the long-term benefits of reducing chemical inputs.

▶Application Process

  • States must track and report their annual consumption of chemical fertilizers to the Central Government.
  • The Ministry of Chemicals and Fertilizers compares current usage against the three-year average baseline.
  • States calculate the total subsidy savings generated by reducing chemical fertilizer usage.
  • The Central Government validates the data and approves the release of 50% of the saved subsidy amount.
  • States submit utilization plans for the grant to promote sustainable agriculture practices.

₹ Budget Allocation

1250

Funding Ratio (Centre:State): 50% of the subsidy savings are passed to states as a grant (100% Central funding derived from savings).

Exam Relevance

GS Paper: GS3

Prelims Relevance7%
Mains Relevance7%

Syllabus Tags

AgricultureSoil HealthEnvironmentFertilizersGS3

Historical Context

Announced in the 2023-24 Union Budget to address the environmental impact of imbalanced fertilizer use (N:P:K ratio) and the fiscal stress of global fertilizer price volatility.

Exclusion Criteria

  • States that do not show a measurable reduction in chemical fertilizer consumption compared to the average of the last 3 years.

Challenges

  • Inconsistent availability of bio-fertilizers and organic alternatives across all districts.
  • High dependency on urea due to its immediate yield-boosting properties and low price.
  • Difficulty in monitoring the qualitative shift from chemical to organic inputs at the ground level.

Reforms & Recommendations

  • Integration with Soil Health Card data for precision fertilization.
  • Increasing the production capacity of Nano-Urea and Nano-DAP plants.

Performance Statistics

Metric

₹2.25 Lakh Crore

Source: Ministry of Chemicals and Fertilizers

Metric

70% of the 50% grant

Source: PIB

Critical Analysis

PM-PRANAM represents a paradigm shift from input-subsidy-driven agriculture to outcome-based fiscal federalism. By linking state grants to the actual reduction in chemical fertilizer consumption, the Union government addresses two critical issues: the ballooning fertilizer subsidy bill (exceeding ₹2.25 lakh crore in FY23) and soil degradation. However, the success of the scheme depends on the availability and market-readiness of alternatives like Nano-DAP and bio-fertilizers, and the willingness of farmers to move away from the high-yield security of Urea.

SDG Linkages

SDG 2: Zero HungerSDG 12: Responsible Consumption and ProductionSDG 15: Life on Land

Constitutional Backing

Article 48 (Organization of agriculture and animal husbandry)Article 51A(g) (Protection and improvement of the natural environment)

Technology Used

iFMS PortalNano-fertilizer technologyDirect Benefit Transfer (DBT)

Success Stories

IFFCO Nano Urea Success

Key Takeaways

  • Incentivizes states to promote alternative fertilizers.
  • 50% of the grant can be used for asset creation in rural areas.
  • Focuses on 'Mother Earth' restoration through reduced chemical leaching.

Probable Questions

How does PM-PRANAM aim to balance India's agricultural productivity with environmental sustainability? Discuss in the context of the rising fertilizer subsidy bill.

MediumHigh

Mains Answer Fodder

The scheme is a prime example of 'cooperative federalism' where states are incentivized rather than mandated to adopt sustainable practices. It directly supports the 'LiFE' (Lifestyle for Environment) movement and promotes the 'Circular Economy' through the use of organic waste-based fertilizers.

Convergence Schemes

  • Paramparagat Krishi Vikas Yojana (PKVY)
  • GOBARdhan Scheme
  • PM-KUSUM

Sector Tags

AgricultureEnvironmentFertilizers