The government has approved a new scheme called PM-PRANAM to promote the use of alternative fertilizers and reduce the use of chemical fertilizers. The existing urea subsidy program will be extended for three more years until March 2025, with a budget of Rs 3.68 lakh crore. A subsidy of Rs 1,451 crore will also be provided to promote organic manure. The total package for these initiatives exceeds Rs 3.70 lakh crore.
The government has decided to introduce sulphur-coated urea in India for the first time to address sulphur deficiency in the soil. The PM-PRANAM scheme aims to incentivize states to adopt alternative fertilizers by providing them with the subsidy saved from reducing the use of chemical fertilizers. The CCEA has approved a total outlay of Rs 3,70,128.7 crore for innovative schemes for farmers.
The continuation of the urea subsidy scheme has been approved, ensuring the availability of fertilizer to farmers at a consistent price. Rs 3,68,676.7 crore has been allocated for urea subsidy over three years. A nutrient-based subsidy of Rs 38,000 crore for phosphatic and potassic (P&K) fertilizers has also been approved for the Kharif season of 2023-24.
Sulphur-coated urea is more cost-effective and efficient compared to conventional urea, with a higher nitrogen absorption rate. The scheme also includes a subsidy of Rs 1,500 per tonne for the marketing of organic fertilizers produced from Biogas Plants or Compressed Biogas (CBG) Plants under the GOBARdhan initiative.
The government emphasizes its support for farmers, with a significant amount allocated under various schemes. This translates to an average benefit of Rs 52,574 per farmer and Rs 18,108 per acre, benefiting a total of 12 crore farmers in the country.
