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
1250
Funding Ratio (Centre:State): 50% of the subsidy savings are passed to states as a grant (100% Central funding derived from savings).
GS Paper: GS3
Syllabus Tags
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.
Metric
₹2.25 Lakh Crore
Source: Ministry of Chemicals and Fertilizers
Metric
70% of the 50% grant
Source: PIB
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.
How does PM-PRANAM aim to balance India's agricultural productivity with environmental sustainability? Discuss in the context of the rising fertilizer subsidy bill.
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.