Context

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

About

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

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 “PradhanmantriBhartiyaJanurvarakPariyojna” (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.
• 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.