Government to Approve a Unique Scheme for Farmers

 

Latest Context

The PM-PRANAM scheme which aimed at restoring and nurturing Mother Earth through the use of biofertilizers has been approved Cabinet Committee on Economic Affairs (CCEA).

In addition, it also made the following measures

• The Fair and Remunerative Price (FRP) for sugarcane has been increased by Rs 10 to Rs 315 per quintal for the 2023-24 season starting from October.
• The government has enlarged the urea subsidy scheme with an allocation of ₹3.68 lakh crore until March 2025. For the Kharif season of 2023-24, a nutrient-based subsidy of ₹38,000 crore has been sanctioned.

Key Points of the PM-PRANAM Scheme

• It stands for PM Program for Restoration, Awareness, Nourishment and Amelioration of Mother Earth.
• It was first announced in the 2023-24 Budget by the Union government with an aim to reduce the use of chemical fertilizers by incentivizing states to adopt alternative fertilizers. It also laid emphasis on promoting organic farming.
• It also made an outlay of Rs. 1415.84 crore for Market Development Assistance (DMA) for promoting organic farming from Gobardhan plants.

Objective:

• It encourages the farmers for the balanced use of fertilizers in conjunction with biofertilizers and organic fertilizers.
• It decreases the subsidy burden on chemical fertilizers, which was approximately. Rs 2.25 lakh crores in 2022-2023

Key Features of the Scheme:

• Financing: No separate budget has been kept for the PM-PRANAM scheme. Department of Fertilizers, Ministry of Chemicals & Fertilizers will finance this scheme by the savings of existing fertilizer subsidies under schemes.

• Subsidy Savings and Grants: Under this scheme, the Central government will offer 50% of the subsidy savings to the states as a grant. Seventy per cent can be used to develop the assets related to the technological adoption of alternative fertilizers and production units at various levels out of the grant. To reward and encourage farmers, panchayats, and other stakeholders involved in fertilizer reduction and awareness generation, rest 30% of the fund will be used.

• Calculation of Fertilizer Reduction: To calculate fertilizer reduction, the reduction in urea consumption by a state will be compared to its average consumption of urea over the previous three years. It will determine the eligibility for subsidy savings and grants.

• Promotion of Sustainable Agriculture: Promoting the use of biofertilizers and organic fertilizers will encourage sustainable agricultural practices. It will increase soil fertility, reduce environmental pollution, and support long-term agricultural productivity.

 

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