Why in news?
- The Centre has approved a new scheme PM-PRANAM to incentivise states to promote alternative fertilisers and reduce the use of chemical fertilisers.
- It also decided to continue the current urea subsidy scheme for three years ending March 2025, with an outlay of ₹3.68 lakh crore.
An overview of the news
- The scheme is aimed at incentivising states to use alternative, non-chemical fertilisers.
- The cavinet also decided to continue the current urea subsidy for three years starting FY23, with an outlay of Rs 3.68 trillion.
About PM-PRANAM Scheme
- PM-PRANAM stands for PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth.
- The scheme aims to reduce the use of chemical fertilisers by incentivising state.
- Under the scheme, the states, which will adopt alternative fertilisers will be incentivised with the subsidy that is saved by reducing the use of chemical fertilisers.
- Suppose a state is using 10 lakh tonne of conventional fertiliser.
- If it reduces its consumption by 3 lakh tonne, then the subsidy saving would be ₹3,000 crore.
- Out of that subsidy savings, the Centre will give 50% of it — ₹1,500 crore to the state for promoting the use of alternative fertiliser and other development works.
Introduction of Sulphur-Coated urea (Urea Gold)
- The Cabinet Committee on Economic Affairs (CCEA) has made a significant decision to introduce sulphur-coated urea, also known as Urea Gold, in the country.
- This move aims to address the issue of sulphur deficiency in the soil.
- Sulphur-coated urea offers a more economical and efficient solution compared to other types of urea available in the market.
- It provides a higher nitrogen absorption rate, leading to better crop productivity.
- Conventional urea typically has a nitrogen absorption rate of around 30%.
- Neem-coated urea, which is another alternative, offers a higher absorption rate of 50%.
Read also:- Nutrient Based Subsidy Scheme