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  • Published
    19th Sep, 2022

The Union government intends to launch a scheme — named PM PRANAM — to reduce the use of chemical fertilizers by incentivising states.


What is in the proposed scheme?

  • PM PRANAM is short for PM Promotion of Alternate Nutrients for Agriculture Management Yojana.
  • The scheme aims to:
    • to reduce the use of chemical fertilisers
    • to bring down the subsidy burden on chemical fertilisers, which is estimated to reach Rs 2.25 lakh crore in 2022-23 — 39 per cent higher than last year’s figure of Rs 1.62 lakh crore.
  • The move is in line with the government’s focus on promoting a balanced use of fertilisers or alternative fertilisers in the last few years.

About Indian Fertilizer Sector

  • Indian soils are generally deficient in nitrogen, phosphorus, and potassium and do not give high yields. Hence, the need for fertilizers. 
  • Green Revolution (Use of chemical fertilizers was one component) has made a significant impact on Indian agriculture. 
    • Thus, India was able to achieve self-sufficiency in food production.
  • Fertilizer Manufacturing Sectors
    • Fertilizer Manufacturing Companies (PSUs): National Fertilizers Limited, Rashtriya Chemicals & Fertilizers Limited, etc
    • Fertilizer Manufacturing Co-operatives: IFFCO, KRIBHCO, etc
    • Position in the World: 3rd in terms of production and 2nd in terms of consumption
    • Decision-Making Body: Department of Fertilizers, Ministry of Chemicals & Fertilizers, Govt of India
  • India is among the world’s largest buyers of fertiliser, besides China, Brazil, and the US.
  • India imports four types of fertilisers:
    • Urea
    • diammonium phosphate (DAP)
    • muriate of potash (MOP)
    • nitrogen-phosphorous-potassium (NPK)

Important Government Initiatives and Schemes

  • “One Nation One Fertiliser” scheme: The scheme would be done by introducing a “Single Brand for Fertilisers and Logo” under the fertiliser subsidy scheme named “Pradhanmantri Bhartiya Janurvarak Pariyojna” (PMBJP).
    • The scheme would extend to all four fertilisers – Urea, Di-Ammonium Phosphate, Muriate of Potash and complex NPK – with BHARAT pre-fixed.
  • Neem Coating of Urea: The Department of Fertilizers (DoF) has made it mandatory for all the domestic producers to produce 100% urea as Neem Coated Urea (NCU).
  • New Urea Policy (NUP) 2015: Objectives of the policy are-
    • To maximize indigenous urea production.
    • To promote energy efficiency in the urea units.
    • To rationalize the subsidy burden on the Government of India.
  • New Investment Policy- 2012: The Government announced New Investment Policy (NIP)-2012 in January, 2013 and made amendments in 2014 to facilitate fresh investment in the urea sector and to make India self-sufficient in the urea sector.
  • Policy on Promotion of City Compost: The Government of India approved a policy on promotion of City Compost, notified by the DoF in 2016 granting Market Development Assistance of Rs. 1500/- for scaling up production and consumption of city compost.
  • Nutrient Based Subsidy (NBS) Scheme: It has been implemented from April 2010 by the DoF. Under NBS, a fixed amount of subsidy decided on an annual basis, is provided on each grade of subsidized Phosphatic & Potassic (P&K) fertilizers depending on its nutrient content.


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