Understanding the PM Pranam Scheme for the Fertilizer Sector

The PM Pranam Scheme is a government initiative that seeks to provide financial assistance to the fertilizer sector. The scheme is aimed at ensuring the timely payment of subsidies to fertilizer manufacturers and importers. The scheme was launched by the Ministry of Chemicals and Fertilizers in 2019.

What is the PM PRANAM scheme?

The PM PRANAM scheme is a government initiative aimed at reducing the use of chemical fertilizers and promoting the adoption of alternative fertilizers in India. Under this scheme, states that achieve savings in fertilizer subsidies will receive a grant equal to 50% of the savings. The states are required to use 70% of this grant to create assets for technological adoption in alternate fertilizers and production units at the district, block, and village levels. The remaining 30% can be used to reward and encourage farmers, panchayats, farmer-producer organizations, and self-help groups involved in reducing fertilizer usage. The scheme will be funded through savings from existing fertilizer subsidy programs and will be monitored using the fertilizer ministry dashboard iFMS.

Why is it necessary?

The PM PRANAM scheme is necessary to address the increasing demand for chemical fertilizers in India. Over the past five years, the usage of fertilizers has risen significantly, leading to higher costs for farmers. The scheme aims to promote the balanced use of fertilizers and alternative fertilizers by providing incentives to states that reduce their fertilizer consumption. It will pass on 50% of subsidy savings to states, which must allocate a portion for technological adoption and the rest for rewarding farmers and organizations involved in reducing fertilizer usage. The scheme will be funded through existing fertilizer subsidies and monitored using the iFMS dashboard.

Objectives of the PM Pranam Scheme

The primary objective of the PM Pranam Scheme is to ensure that fertilizer manufacturers and importers receive their subsidy payments on time. This is crucial to ensure that there is no disruption in the supply of fertilizers, which is essential for the agricultural sector. The scheme also aims to reduce the financial burden on fertilizer manufacturers and importers, who often face cash flow issues due to delayed subsidy payments.

Benefits of the PM Pranam Scheme

The PM Pranam Scheme has several benefits for the fertilizer sector. Firstly, it ensures that the subsidy payments are made in a timely manner, which helps to maintain the supply of fertilizers. Secondly, it reduces the financial burden on the fertilizer manufacturers and importers, who can use the funds to invest in new technologies and expand their operations. Finally, the scheme also helps to reduce the cost of production of fertilizers, which can be passed on to the farmers in the form of lower prices.

Implementation of the PM Pranam Scheme

The PM Pranam Scheme is implemented through an online platform called the Direct Benefit Transfer (DBT) system. The subsidy amount is transferred directly to the bank account of the fertilizer manufacturers and importers. The scheme is monitored by the Department of Fertilizers, which ensures that the subsidy payments are made on time.

Future of the PM Pranam Scheme

The PM Pranam Scheme is a step in the right direction towards ensuring the timely payment of subsidies to the fertilizer sector. The scheme has several benefits for the sector, including maintaining the supply of fertilizers, reducing the financial burden on manufacturers and importers, and lowering the cost of production. The successful implementation of the scheme will depend on the effective monitoring of the subsidy payments and the timely resolution of any issues that may arise. With the support of the government, the PM Pranam Scheme has the potential to transform the fertilizer sector and contribute to the growth of the agricultural sector.

Avatar photo

Dr. Kirti Sisodhia

Content Writer

ALSO READ

Leave a Reply

Your email address will not be published. Required fields are marked *