schemes10 May 20261 min read

PM-PRANAM Scheme: 15 States Achieve 25% Reduction in Chemical Fertilizer Use

The Ministry of Chemicals and Fertilizers reported that 15 states have successfully reduced their chemical fertilizer consumption by 25% in the last fiscal year under the PM-PRANAM scheme. The savings generated from reduced subsidies are being diverted to promote organic farming.

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PM-PRANAM Scheme: 15 States Achieve 25% Reduction in Chemical Fertilizer Use

2-Minute Summary (TL;DR)

15 states achieved a 25% reduction in chemical fertilizer use in the last fiscal year under the PM-PRANAM scheme.
PM-PRANAM (Program for Restoration, Awareness, Nourishment and Amelioration of Mother Earth) was launched in the Union Budget 2023-24.
The scheme incentivizes states to reduce chemical fertilizer use and promote organic, bio, and nano-fertilizers.
Funding for PM-PRANAM comes from savings in fertilizer subsidies; 50% of savings are given to states as grants.
States like Uttar Pradesh, Madhya Pradesh, and Punjab are leading in the implementation and success of the scheme.
The scheme aims to improve soil health, reduce water pollution, and promote sustainable agricultural practices.
Savings generated are to be used for capital investment in agriculture infrastructure and promoting alternative fertilizer schemes.
The reduction target is based on the average consumption of chemical fertilizers in the three years preceding the scheme's launch.

How This Topic is Tested in Competitive Exams

Exam	Frequency	Approx. Marks	What Gets Asked
SSC (CGL / CHSL / MTS)	Very High	5–8	Government schemes are one of the most tested topics in SSC CGL and CHSL GK sections.
UPSC / State PCS	High	8–12	UPSC tests implementation, target beneficiaries, and outcomes — not just scheme names.
State PCS / PSC	Very High	6–10	Both central and state schemes are tested extensively in state PCS papers.
Banking (IBPS / SBI)	High	4–6	Financial inclusion schemes, Jan Dhan, PMSBY, and credit guarantee schemes are key banking exam topics.

What to Memorize from This Topic

Scheme: full name, ministry, launch date, objective
Financial figures: allocation, beneficiaries reached so far
Eligibility: who can benefit (age, income, gender, area)
Implementing agency: central, state, or both
Related amendments or extensions: any recent modifications to the scheme

Practice Questions

Q1. What is the primary objective of the PM-PRANAM scheme?

To increase the production of chemical fertilizers.
To provide direct financial aid to all farmers.
To incentivize states to reduce chemical fertilizer usage and promote alternative fertilizers.
To subsidize the cost of organic fertilizers.

Explanation: The PM-PRANAM scheme aims to encourage states to reduce their reliance on chemical fertilizers like Urea and DAP, and instead promote the use of organic, bio-fertilizers, and nano-fertilizers for sustainable agriculture.

Q2. Under the PM-PRANAM scheme, what percentage of fertilizer subsidy savings are passed on to the states?

25%
50%
75%
100%

Explanation: The scheme mandates that 50% of the savings achieved by a state from reduced chemical fertilizer consumption are transferred back to the state as a grant to support sustainable agricultural practices.

Q3. Which Union Budget introduced the PM-PRANAM scheme?

Union Budget 2021-22
Union Budget 2022-23
Union Budget 2023-24
Union Budget 2024-25

Explanation: The PM-PRANAM scheme was announced and introduced as part of the provisions outlined in the Union Budget for the fiscal year 2023-24.

Q4. Which of the following is NOT a type of alternative fertilizer promoted by the PM-PRANAM scheme?

Organic fertilizers
Bio-fertilizers
Nano-fertilizers
Potash fertilizers

Explanation: The scheme specifically promotes organic fertilizers, bio-fertilizers, and nano-fertilizers as alternatives to chemical fertilizers. Potash fertilizers are a type of chemical fertilizer.

Q5. How is the PM-PRANAM scheme primarily funded?

Through a dedicated budgetary allocation from the Central government.
By contributions from international environmental organizations.
Through savings generated from reduced fertilizer subsidies.
Via taxes levied on chemical fertilizer manufacturers.

Explanation: The PM-PRANAM scheme operates on an innovative funding model where it is financed by the savings achieved in the fertilizer subsidy budget when states reduce their consumption of chemical fertilizers.

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