Union Cabinet approved PM-PRANAM scheme

Tags: Economy/Finance National News

The Union Cabinet Committee on Economic Affairs (CCEA) on 28 June approved the PM-PRANAM Scheme. 

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

• The full name of PM PRANAM is Promotion of Alternative Nutrients for Agriculture Management Scheme.

• Aim of the Scheme :

• to reduce the use of chemical fertilisers

• Reducing the subsidy burden on chemical fertilisers, which is projected to reach Rs 2.25 lakh crore in 2022-23 - 39 per cent more than last year's figure of Rs 1.62 lakh crore.

• 70 percent of the grant provided under the scheme can be used for asset creation related to technology adoption of alternative fertilizers and alternative fertilizer production units at village, block and district level.

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%.