The CCEA, chaired by PM Narendra Modi, has also approved an outlay of Rs 1,451 crore subsidy to promote organic manure, taking the total package to over Rs 3.70 lakh crore
The Centre on Wednesday approved a new scheme PM-PRANAM to incentivise states to promote alternative fertilisers and reduce the use of chemical fertilisers and also decided to continue the current urea subsidy scheme for three years ending March 2025, with an outlay of Rs 3.68 lakh crore.
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That apart, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved an outlay of Rs 1,451 crore subsidy to promote organic manure, taking the total package to over Rs 3.70 lakh crore.
The CCEA also decided to introduce sulphur-coated urea (Urea Gold) in the country for the first time to address sulphur deficiency in the soil.
Briefing media, Union Chemicals and Fertilisers Minister Mansukh Mandaviya said the CCEA has approved a scheme PM-PRANAM (PM Programme for Restoration, Awareness, Generation, Nourishment and Amelioration of Mother Earth).
“PM-PRANAM is aimed at saving the soil and promote sustainable balanced use of fertilisers. The scheme involves the participation of the state governments,” he said.
Under the scheme, Mandaviya said that the states, which will adopt alternative fertilisers will be incentivised with the subsidy that is saved by reducing the use of chemical fertilisers.
Citing example, suppose a state is using 10 lakh tonne of conventional fertiliser, and if it reduces its consumption by 3 lakh tonne, then the subsidy saving would be Rs 3,000 crore. Out of that subsidy savings, the Centre will give 50 per cent of it — Rs 1,500 crore to the state for promoting the use of alternative fertiliser and other development works, he added.
The scheme was announced by Finance Minister Nirmala Sitharaman in her Budget speech in February.
According to an official statement, the CCEA approved a “unique package” of innovative schemes for farmers with a total outlay of Rs 3,70,128.7 crore.
“The bouquet of schemes is focused on the overall well-being and economic betterment of farmers by promoting sustainable agriculture. The initiatives will boost farmers’ income, strengthen natural/organic farming, rejuvenate soil productivity and ensure food security,” it added.
The CCEA approved the continuation of the urea subsidy Scheme to ensure constant availability of fertiliser to the farmers at the same price of Rs 242/45 kg bag, excluding taxes and neem coating charges.
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Out of the total package, Rs 3,68,676.7 crore has been committed for urea subsidy for three years (2022-23 to 2024-25). This is apart from the recently approved nutrient-based subsidy of Rs 38,000 crore for phosphatic and potassic (P&K) fertilisers during the Kharif season of 2023-24.
On sulphur-coated urea, Mandaviya said that the country has been using only urea, DAP and NPK fertilisers for the last 67 years. The efforts to promote alternative fertilisers and set up manufacturing units could not happen in the past. However, the Modi government initiated the work.
Sulphur-coated urea is more economical and efficient than the other kinds of urea. For instance, the nitrogen absorption in conventional urea is 30 per cent, neem-coated urea is 50 per cent, and nano urea is 80 per cent. Sulphur-coated urea will increase nitrogen absorption efficiency to 78 per cent.
“It will address Sulphur deficiency in the soil in the country. It will also save input costs for the farmers, and also raise incomes for farmers with enhanced production and productivity,” the statement said.
On providing assistance to organic manure, the minister said Rs 1,451.84 crore has been approved for Market Development Assistance (MDA) for promoting organic fertiliser from Gobardhan Plants.
Under the scheme, a subsidy of Rs 1,500 per tonne will be provided to support the marketing of organic fertilisers — Fermented Organic Manures (FOM)/Liquid FOM/Phosphate Rich Organic Manures (PROM) produced as by-products from Biogas Plants/Compressed Biogas (CBG) Plants set up under umbrella GOBARdhan initiative.
Asserting that the government is pro-poor and pro-farmers, Mandaviya said the Centre has provided Rs 6,30,890 crore during 2022-23 under five schemes, including fertiliser subsidy, PM-KISAN, Price Stabilisation Fund, expense on procurement at MSP and NRLM.
This translates into an average benefit of Rs 52,574 per farmer and Rs 18,108 per acre, he said, adding there are 12 crore farmers in the country.
