PM-PRANAM (Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth) Scheme (UPSC/RAS/PSI) Current Affairs {Economy}

Nodal Ministry- Ministry of Chemicals and Fertilizers (Department of Fertilizers)

1. Policy Paradigm

Cabinet Approval- Formally announced in the Union Budget 2023–24 and approved by the Cabinet Committee on Economic Affairs (CCEA) on June 28, 2023.
Core Mission- To incentivize States and Union Territories to promote the balanced use of chemical fertilizersalongside alternative, organic, and bio-fertilizers.
Financial Framework- Operates with no separate financial outlay or dedicated budget head; funded directly through the savings generated in chemical fertilizer subsidies by the Department of Fertilizers.
Primary Objective- Reduces the unsustainable consumption of chemical fertilizers (specifically Urea, DAP, MOP, and NPK complex fertilizers) to restore soil organic health, reduce soil toxicity, and curb the government's mounting fertilizer subsidy burden.
National Policy Alignment- Direct intervention under the Viksit Bharat@2047 agricultural roadmap, complementing initiatives like Paramparagat Krishi Vikas Yojana (PKVY), Soil Health Card, and National Mission on Natural Farming.

Subsidy Savings Mechanism- The Central Government calculates the average consumption of chemical fertilizers in a State/UT over the preceding three years as the baseline.
50% Central Grant Incentivization- If a State/UT reduces its total consumption of chemical fertilizers in a given year compared to its 3-year baseline, 50% of the financial subsidy saved by the Centre is passed back to that State/UT as a direct central grant.
Formula Illustration- If a State reduces chemical fertilizer usage saving ₹1,000 crore in central subsidy, the Centre provides a ₹500 crore grant to that State Government.
Inter-State Parity- Standardizes baseline calculations using regional soil testing profiles and crop pattern adjustments to ensure equitable participation across both major agricultural and smaller states.
Dynamic Year-on-Year Baselines- Recalculates the 3-year moving average periodically to incentivize continuous, incremental reductions rather than one-time drops.

70% Component (Asset Creation & Alternate Infrastructure)- Dedicated to creating capital assets for the adoption of alternate fertilizers, setting up village-level composting units, expanding Nano Urea/Nano DAP infrastructure, and deploying drone-based precision spraying technology.
30% Component (Incentives, Extension & Awareness)- Spent on incentivizing grassroots actors—Panchayats, Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and progressive farmers who successfully reduce chemical usage at the village level.
Local Governance Integration- Gram Panchayats that achieve 100% replacement of chemical urea with bio-fertilizers or Nano Urea in their jurisdiction receive direct financial rewards from this 30% pool.
Monitoring & Audit Tracking- Managed digitally via the Integrated Fertilizer Management System (iFMS) portal to track real-time off-take data and verify subsidy savings.
Capacity Building Support- Funds local agricultural universities and Krishi Vigyan Kendras (KVKs) to conduct field demonstrations on soil restoration and regenerative farming.

Heavy Chemical Subsidy Burden- The Centre's annual fertilizer subsidy bill exceeded ₹2.5 lakh crore in peak years due to global price volatility, distorting fiscal deficits.
Distorted NPK Ratio- Excessive subsidies on Urea have skewed the ideal Nitrogen-Phosphorus-Potassium (N:P:K) soil ratio from the recommended 4:2:1 to nearly 8.2:4:1 in agricultural states like Punjab and Haryana.
Soil Degradation & Secondary Micro-Nutrient Deficits- Over-application of chemical nitrogen leads to soil acidification, salinity, waterlogging, and critical shortages of micro-nutrients like Zinc, Iron, and Boron.
Environmental Degradation & Eutrophication- Unabsorbed chemical nitrates leech into ground aquifers and run off into local water bodies, triggering toxic algal blooms and contaminating drinking water supplies.
Health Hazards- Biomagnification of chemical residues in the food chain increases health risks, including "blue baby syndrome" (methemoglobinemia) from nitrate-contaminated groundwater.

GOBARdhan Scheme Integration- Synergizes with Galvanizing Organic Bio-Agro Resources Dhan (GOBARdhan) to convert cattle dung and organic waste into Compressed Bio-Gas (CBG) and Fermented Organic Manure (FOM).
Market Development Assistance (MDA)- Supported by a grant of ₹1,500 per MT to promote the marketing of organic fertilizers produced from GOBARdhan plants (like FOM and Liquid Fermented Organic Manure).
Nano Urea & Nano DAP Expansion- Promotes the adoption of liquid Nano Urea and Nano DAP developed by IFFCO, where a 500 ml bottle effectively replaces a 45 kg bag of conventional granular urea, offering 80%+ nutrient use efficiency.
PM-KUSUM & Micro-Irrigation Alignment- Links alternate fertilizer application with drip fertigation systems to maximize plant absorption and reduce surface run-off.
Zero Budget Natural Farming (ZBNF)- Reinforces natural inputs like Jeevamrutha and Beejamrutha, shifting farmers toward climate-resilient practices.

High Urea Price Asymmetry- Heavy retail subsidization of conventional urea makes it extremely cheap for farmers relative to alternate organic inputs, creating behavioral resistance to change.
Yield Loss Fears- Marginal and small farmers fear short-term crop yield drops during the transition period from chemical-intensive to organic/bio-fertilizer regimes.
State Performance Disparities- States with already low chemical fertilizer consumption (e.g., North-Eastern states like Sikkim) have smaller margins for further reduction compared to high-use states.
Supply Chain Deficits for Organic Inputs- Fragmented local availability and lack of standardized quality certification for bio-fertilizers hinder widespread adoption.
Awareness and Extension Gaps- Insufficient agricultural extension staff at the Block level to educate farmers on precision fertigation and soil microbe health.

Source: PIB