Govt Approves Massive Rs 3.70 Lakh Crore Agricultural Package, Extends Urea Subsidy Until March 2025

The Indian government has taken significant steps to support farmers and promote sustainable agriculture with the approval of a package of innovative schemes worth Rs 3.70 lakh crore. During a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi, several initiatives were announced to enhance the well-being of farmers and ensure food security in the country.

Continuation of Urea Subsidy Scheme:

The government has cleared the continuation of the urea subsidy scheme for an additional three years, until 2024-25. The scheme, with an outlay of Rs 3.68 lakh crore, will guarantee the availability of fertilizers to farmers at the same price of Rs 242 per 45 kg bag, excluding taxes and neem coating charges. This move aims to moderate farmers' input costs and support their agricultural activities.

New Scheme - PM-PRANAM:

In addition to the urea subsidy scheme, the government has approved the implementation of the PM-PRANAM (PM Programme for Restoration, Awareness, Generation, Nourishment, and Amelioration of Mother Earth) scheme. This scheme incentivizes states to reduce the use of chemical fertilizers and promote alternative fertilizers. With an allocation of funds worth Rs 1,451.84 crore, the scheme aims to promote organic fertilizers from biogas plants and establish a circular economy through waste-to-wealth initiatives under the GOBARdhan scheme.

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Focus on Sustainable Agriculture and Self-Sufficiency:

The initiatives introduced under the package aim to boost farmers' income, strengthen natural and organic farming practices, rejuvenate soil productivity, and ensure long-term food security. The government aims to reduce import dependence by increasing indigenous production of urea and making India self-sufficient in fertilizer production by 2025-26. The country's urea production has seen a steady increase, reaching 284 LMT in 2022-23 compared to 225 LMT in 2014-15.

Promotion of Alternative Fertilizers and Sulphur-Coated Urea:

To support the reduction of chemical fertilizer usage, the PM-PRANAM scheme will incentivize the marketing of organic fertilizers derived from biogas plants. These organic fertilizers, branded as 'Bharat,' will help manage crop residue, address stubble burning, and provide an additional income source for farmers.

Moreover, the government plans to introduce sulfur-coated urea, which offers economic benefits compared to neem-coated urea. This alternative will address soil deficiencies while reducing input costs for farmers and increasing their income.

Increase in Sugarcane Fair and Remunerative Price (FRP):

The government has also announced a raise in the fair and remunerative price (FRP) of sugarcane by Rs 10 per quintal. The FRP for the upcoming 2023-24 season has been fixed at Rs 315 per quintal, a 3.28% increase from the previous year. This decision aims to support sugarcane growers and ensure their fair remuneration.

The government's emphasis on agriculture and farmers' welfare reflects its commitment to improving the livelihoods of those engaged in agriculture. These initiatives are expected to have a positive impact on farmers' income, promote sustainable agricultural practices, and contribute to India's food security goals.

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