PM PRANAM Yojana – The central government has initiated a scheme to ease the burden of subsidies on chemical fertilizers for farmers across the country. There has been a significant increase in the use of chemical fertilizers by farmers, leading to a rising burden of subsidies on the government. To address this issue, the government is considering implementing a new initiative called the PM PRANAM Yojana (Promotion of Alternative Nutrients for Agriculture Management). The main goal of this scheme is to reduce the financial pressure caused by chemical fertilizer subsidies. If you are a farmer, make sure to read this article thoroughly, as we will detail the benefits of PM PRANAM Yojana for both the government and farmers in the country.
Overview of PM PRANAM Yojana 2025
The PM PRANAM Yojana is designed to alleviate the increasing subsidy burden on chemical fertilizers. It is anticipated that the subsidy burden for the financial year 2024-25 will reach ₹2.25 lakh crore, which is 39% higher than the previous year’s figures. According to a report by ‘Indian Express’, there will be no separate budget allocated for the PM PRANAM Yojana; instead, it will be funded through savings from existing fertilizer subsidy schemes managed by the fertilizer department. 50% of the savings on subsidies will be awarded as grants to states. Of this amount, 70% will be utilized by state governments for adopting technology and establishing alternative fertilizer production units at village, block, and district levels, while the remaining 30% will be used to reward farmers, panchayats, farmer producer organizations, and self-help groups involved in reducing fertilizer use and raising awareness.
Update as of July 1st – Approval granted for PM PRANAM Yojana with a budget of ₹3.68 lakh crore.
The central cabinet has recently granted approval for the PM PRANAM Yojana, aimed at promoting the reduction of chemical fertilizer use and providing incentives to states. The cabinet has set a budget of ₹3.68 lakh crore for the PM PRANAM Yojana. In February 2024, Finance Minister Nirmala Sitharaman announced its implementation during the budget presentation for 2024-25, which was officially launched on June 28, 2024. This scheme is expected to save ₹3,000 crore in subsidies and promote balanced usage of alternative and chemical fertilizers, encouraging states and Union Territories.
Promotion of Alternative Fertilizers under PM PRANAM Yojana
In the budget presented on February 1, 2024, Finance Minister Nirmala Sitharaman made a special announcement to alleviate farmers’ burdens. To assist farmers across the nation, the government aims to encourage the use of alternative fertilizers through the PM PRANAM Yojana. This initiative is intended to motivate states to reduce fertilizer usage. Additionally, the finance minister stated that state governments would be encouraged to establish unity malls, promoting and selling products from the One District One Product (ODOP) and Geographical Indicator (GI) sectors.
Details of PM PRANAM Yojana 2025
| Proposed Scheme Name | PM PRANAM Yojana |
| Initiative by | Central Government |
| Objective | To reduce the burden of increasing chemical fertilizer subsidies on the central government |
| Beneficiaries | Central Government and farmers across the country |
| Concerned Department | Fertilizer Department |
| Year | 2025 |
| Official Website | Not yet known. |
Objectives of PM PRANAM Yojana
The primary objective of the PM PRANAM Yojana is to alleviate the increasing burden of chemical fertilizer subsidies on the central government, which has been surging yearly due to high demand from farmers. According to official data, the government allocated ₹79,530 crore for chemical fertilizer subsidies in the 2024-25 budget, which was later revised to ₹1.40 lakh crore, and is projected to reach ₹1.62 lakh crore by 2024-25. However, the fertilizer minister indicated that the subsidy figure may surpass ₹2.25 lakh crore this year, continuing to rise annually. The extensive use of chemical fertilizers by farmers nationwide has prompted the government to consider implementing the PM PRANAM Yojana, which aims to lessen the burden of increasing chemical fertilizer subsidies.
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Implementation of PM PRANAM Yojana
- No separate budget will be allocated for the PM PRANAM Yojana; it will be funded through savings from existing fertilizer subsidy schemes.
- 50% of the savings from the fertilizer subsidies will be granted to state governments.
- 70% of these grants will be used by state governments at the village, block, and district levels for adopting technology and establishing alternative fertilizer production units.
- The remaining 30% of the grants will be utilized to reward and encourage farmers, panchayats, farmer producer organizations, and self-help groups participating in reducing fertilizer usage and raising awareness.
Benefits and Features of PM PRANAM Yojana
- Direct Benefits: The PM PRANAM Yojana will provide direct benefits to the central government as well as the farming community.
- This scheme aims to lessen the financial burden of increasing subsidies on chemical fertilizers.
- The expected subsidy burden for 2024-25 is ₹2.25 lakh crore, a 39% increase from the previous year’s figures.
- To address the growing use of chemical fertilizers among farmers, the implementation of this scheme is being considered.
- Under the PM PRANAM Yojana, the central government will provide grants to state governments for the establishment of alternative fertilizers and production units, along with relevant infrastructure.
- Funding for these grants will come from savings on existing fertilizer subsidies managed by the fertilizer department.
- Reportedly, senior officials from the Union Ministry of Chemicals and Fertilizers, who deliberated on the scheme, briefed state officials during a national conference on agriculture that took place on September 7.