India's Ministry of Chemicals & Fertilizers to Unveil PM-Pranam Scheme to Promote Sustainable Farming

In a significant step towards promoting sustainable agriculture and reducing fertilizer subsidies, the Ministry of Chemicals and Fertilizers in India is set to propose a cash incentive scheme called PM-Pranam. The program aims to reward states for effectively reducing their consumption of chemical soil nutrients, thereby encouraging the adoption of natural and organic farming practices.

The PM-Pranam scheme, announced by Finance Minister Nirmala Sitharaman during her budget speech in February 2023, seeks to save the government an estimated INR 190 billion ($2.5 billion) in subsidies. By incentivizing states to lower their reliance on chemical fertilizers, the initiative not only addresses financial concerns but also emphasizes the importance of sustainable agricultural practices.

Under the proposed scheme, cash incentives will be granted to states based on their ability to reduce fertilizer consumption. The incentive will be calculated at 50% of the fertilizer subsidy savings for a given year, measured against a baseline average consumption of the past three years. For instance, if a state manages to save INR 3,000 crore, it will receive a grant of INR 1,500 crore, which can be utilized for various purposes, including infrastructure development.

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The primary objective of PM-Pranam is to make agriculture more sustainable and reduce the burden of fertilizer subsidies on the government. India, being the world's third-largest fertilizer buyer, heavily relies on imports to meet its domestic demand. However, the escalating prices of fertilizers due to the Ukraine conflict and disruptions caused by the pandemic have strained the country's budget. In the fiscal year 2022-23, crop-nutrient subsidies reached a record high of INR 2.25 lakh crore.

In addition to the PM-Pranam scheme, the Ministry of Chemicals and Fertilizers is also working on finalizing two other initiatives. The first one is the liberalized market development assistance scheme, which will expand its coverage to include organic waste and rural areas, promoting composting as a means to enrich the soil. The second scheme, known as Urea Gold or sulphur-coated urea, aims to introduce more efficient and cost-effective alternatives to conventional urea, such as liquid nano urea and sulphur-coated urea.

The successful implementation of these schemes will contribute to the restoration, awareness, nourishment, and amelioration of the environment, as highlighted by Finance Minister Nirmala Sitharaman during her budget speech. By encouraging states and union territories to adopt alternative fertilizers and embrace balanced nutrient management, the government aims to strike a balance between agricultural productivity, economic sustainability, and ecological well-being.

The proposed initiatives hold great promise for the future of Indian agriculture, promoting a shift towards sustainable practices that safeguard the environment while ensuring food security for the nation. The government's commitment to reducing fertilizer subsidies and encouraging organic farming marks a significant step towards a greener and more sustainable agricultural landscape in India.

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