Govt okays 3.7 tn for fertilizer plans, raises cane prices

The Cabinet Committee on Economic Affairs (CCEA) approved multiple fertilizer schemes with a total allocation of ₹3.7 trillion on Wednesday to boost farm output, ensure food security, and promote environmental sustainability.

- Puja Das

The Promotion of Alternate Nutrients for Agriculture Management Yojana (PRANAM), introduced in the Union Budget 2023-24, aims to encourage the balanced use of chemical and bio-fertilizers. The scheme encourages states to promote alternative fertilizers, such as bio-compost and manure, reducing the government’s subsidy burden on chemical fertilizers. The estimated subsidy for chemical fertilizers is expected to reach ₹2.25 trillion in 2022-23, surpassing the budget estimates of ₹1.75 trillion.

The Cabinet also decided to continue the Urea Subsidy Scheme to ensure uninterrupted access for farmers at the same price of ₹242 per bag (45 kg) for the next three years, significantly lower than the actual cost of ₹2,200 a bag.

The Centre will provide budgetary support for the scheme. The allocation is over and above the recently approved nutrient-based subsidy of ₹38,000 crore for the 2023-24 kharif season, Union chemical and fertilizer minister Mansukh Mandaviya said after the Cabinet meeting.