Cabinet likely to approve PM PRANAM scheme on June 14

Through this scheme, the government will emphasise on reducing chemical fertilizer subsidy.

The cabinet is likely to approve the PM PRANAM SCHEME in the cabinet meeting on June 14. According to a report by CNBC Awaaz, the approval is likely after the meeting between the cabinet and CCEA (Cabinet Committee on Economic Affairs). PM PRANAM (Promotion of Alternate Nutrients for Agriculture Management Yojana) scheme's main objective is to encourage the balanced use of fertilisers in conjunction with bio fertilisers and organic fertilisers.

Through this scheme, the government will emphasise reducing chemical fertilizer subsidies. The scheme will have no separate budget and will be financed through the “savings of existing fertiliser subsidy” under schemes run by the Department of Fertilizers. Around 50% of subsidy savings will be passed on as a grant to the state that saves the money.

70% of the grant provided under the scheme can 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. The remaining 30% of grant money can be used for rewarding and encouraging farmers, panchayats, farmer producer organisations, and self-help groups that are involved in the reduction of fertiliser use and awareness generation.

The key aim of the scheme is to bring down the subsidy burden on chemical fertilisers, which is estimated to reach Rs 2.25 lakh crore in 2022-23 — 39% higher than the 2021 figure of Rs 1.62 lakh crore.

(This is a developing story)