PM PRANAM set to cut fertiliser subsidy load by 50%

New Delhi: An ambitious scheme that aims to promote balanced use of fertilisers along with bio-fertilisers, called Promotion of Alternate Nutrients for Agriculture Management Yojana or PM PRANAM, is likely to be formally unveiled by the Centre at the end of this month.

According to sources, the scheme, which was announced by Finance Minister Nirmala Sitharaman in the budget for 2023-24, is likely to be cleared by the Union cabinet once Prime Minister Narendra Modi returns from his visit to the US and Egypt.

With PM Modi scheduled to return from his two-nation tour on June 25, there is a likelihood that the scheme may be discussed during the cabinet meeting scheduled towards the end of the month.

Sources further informed that all preparations for sending the scheme for Cabinet approval are complete and once it is cleared, then it would come under the implementation process.

The driving point behind the scheme is to cut down the subsidy burden on chemical fertilisers, which is estimated to reach Rs2.25 lakh crore in 2022-23, much higher than the previous years.

Also it won’t have any separate budget, sources said, and therefore will be financed with the help of funds saved from the ongoing fertiliser subsidy under various schemes of the chemical and fertilisers ministry. Around 50 per cent of savings made in subsidies will be given as a grant to the States that saves the most amount of funds. In addition to this, 70 per cent of the grant provided under the scheme would be used for asset creation related to the technological adoption of alternate fertilisers and alternate fertiliser production units at the village, block and district levels, sources said.

The remaining 30 per cent would be used for rewarding and encouraging farmers and other village bodies for contributing towards reducing the use of fertilisers.