Dedicated efforts needed to effectively implement PM-PRANAM, promote balanced use of alternate and chemical fertilisers

One of the first decisions taken by the Union cabinet in 2025 entails an extension of the one-time special package on DAP (Diammonium Phosphate) till December, 2025. This is done to ensure its affordable availability to farmers involving an estimated budget of Rs 3,850 crore. 

Moreover, a total of 6,38,92,286 and 4,91,56,960 farmers have benefitted from fertiliser subsidy schemes in 2023-24 and 2024-25 respectively, as answered by the Union Ministry of Chemicals and Fertilisers and Health & Family Welfare on December 6, 2024  in response to a Lok Sabha question.

This evidently indicates the crucial role of the fertiliser subsidy program in farmer welfare. However, as pointed in the Economic Survey 2023-24, several challenges hinder effective implementation of these programs as Centrally allocated agricultural subsidies get diverted towards non-agricultural purposes owing to non-integration of fertiliser outlets with land ownership data, non-existent ceiling on sale of fertiliser to a person/family as well as absence of a mechanism to sell subsidised fertilisers to only those individuals identified as farmers.

Central fertiliser subsidies in India have been increasing as recent years have witnessed considerable rise as reflected in the data from Fertiliser Association of India.  

Urea-based subsidy and nutrient-based subsidy are the two primary subsidy schemes implemented by the Department of Fertilisers. While the former focuses on timely availability of adequate urea quantity to farmers at controlled prices and optimisation of indigenous urea production, the latter provides subsidies based on nutrient content (N, P, K) of fertilisers. 

Besides, according to the 32nd Standing Committee Report on Chemicals and Fertilisers (2021-22), the prices of raw materials as well as DAP fertilisers is constantly increasing owing to geo-political issues, leading to greater subsidy expenditure for maintaining the same quantity of supply. In view of the above, the PM-PRANAM (PM Programme for Restoration, Awareness Generation, Nourishment, and Amelioration of Mother Earth) scheme can potentially contribute towards reducing Central subsidy burden by encouraging balanced use of fertilisers. 

Salient features of PM-PRANAM 

Approved by the Cabinet Committee on Economic Affairs (CCEA) on June 28, 2023, the draft guidelines for the Scheme were provided to us by Department of Fertilisers on December 17, 2024 in response to an RTI application filed on December 9, 2024.

Accordingly, the major objectives of the scheme are (i). encouraging balanced and sustainable chemical fertiliser use, (ii). promoting uptake of alternate fertilisers (such as Fermented Organic Manure (FOM), liquid FOM, Phosphate Rich Organic Manure (PROM) and urea gold), (iii). advancing natural and organic farming practices and (iv).furthering natural resources conservation technologies.

The scheme aims to achieve these by incentivising States/Union Territories achieving reduction in chemical fertiliser consumption by rewarding them with a grant based on savings in fertiliser subsidy. As  NK Lenka, Principal Scientist, Indian Institute of Soil Science opines, “PM-PRANAM is a well-thought program of the government with vision for positive impact on soil health and environment conservation.”

Fifty per cent of fertiliser subsidy saved by a State/UT through reduced fertiliser consumption, as compared to previous three years’ average consumption would be provided to them as a grant. 

Of the total grant calculated, 95 per cent would be allocated to the state with the remaining five per cent being used by the Centre (through DoF) for monitoring, capacity building and research. At the state level, 65 per cent of the total grant allocated can be utilised for capital expenditure projects and the remaining 30 per cent for awareness activities focusing on significance of soil health, sustainable farming methods and balanced use of fertilisers. 

The subsidy savings would be calculated based on the data entered into the Integrated Fertiliser Management System (iFMS) portal coupled with the subsidy rates determined by the DoF for that particular assessment year. 

Besides, while states would be credited for increasing area under natural/organic farming and increasing use of alternate fertilisers, increase in chemical fertiliser consumption in adjoining districts of other states is liable to be deducted from the subsidy savings calculated. 

Furthermore, natural calamities leading to reduction in fertiliser usage or increase in cropping area leading to increased consumption would also be taken into consideration during grant calculation. The guidelines also propose setting a steering committee for overseeing implementation of PM-PRANAM. 

The committee would be headed by Secretary (DoF) and comprise of joint secretary level officers from several ministries such as Agriculture and Farmers’ Welfare, Drinking Water and Sanitation, New & Renewable Energy, Housing and Urban Affairs, Petroleum & Natural Gas, Dept. of Animal Husbandry & Dairying as well as Dept. of Expenditure, NITI Aayog. The scheme would be operational for three years (FY 2023-24 to FY 2025-26) with States being required to submit detailed action plans outlining grant utilisation at the beginning of each year. 

Present status of PM-PRANAM implementation

Lok Sabha questions related to steps taken to implement PM-PRANAM and its present status were answered by MoS for Chemicals and Fertilizers on December 12, 2023 and December 15, 2023 respectively and provide that the scheme guidelines have been circulated to States based on which they have prepared their action plans. Additionally, several activities were also being undertaken for promotion of the scheme such as inclusion of PM-PRANAM as an activity under the Viksit Bharat Sankalp Yatra. 

Similarly, questions related to ‘balanced utilisation of fertilisers’ and ‘cap on consumption of chemical fertilisers’ answered on December 6, 2024 by the Ministry on Chemicals and Fertilisers, have referred to the PM-PRANAM and its potential effectiveness in promoting the above. 

However, details related to scheme furtherance and state-wise fertiliser subsidy saved remain uncertain as Lok Sabha questions answered by Minister of State for Chemicals and Fertilisers on July 30, 2024 and November 11, 2024 provide no specific information related to it, although other measures (Market Development Assistance for organic fertilisers) have been taken to reduce chemical fertiliser consumption. 

Promoting effective implementation of PM-PRANAM scheme 

Satyajeet Misra, general manager of marketing at Brahmaputra Valley Fertiliser Corporation Limited (BVFC) during a telephonic conversation voiced that, “while PM-PRANAM is an earnest effort by the Centre to push states and farmers towards adopting alternate fertilisers and promoting nutrient balance within soils, on ground implementation of the scheme would take time and would require strategic mass awareness programs and dedicated market promotion activities. 

Alternatively, states leading in organic farming (Madhya Pradesh, Maharashtra, Rajasthan) and natural farming (Andhra Pradesh, Gujarat, Himachal Pradesh) could particularly benefit from effective scheme implementation. Dedicated implementation efforts combined with a robust monitoring framework are needed to ensure PM-PRANAM’s effective implementation. 

Besides, since the onus of making the scheme, a success largely rests in the hands of State Governments strategic capacity-building initiatives need to be planned in order to elicit the desired behavioural change in farmers to transition towards alternate fertilisers and natural farming practices.