**Executive Summary**
The PM-PRANAM Scheme incentivizes States and Union Territories (UTs) to reduce chemical fertilizer usage and promote sustainable agriculture. Financial incentives are provided based on the reduction in chemical fertilizer consumption compared to a three-year average, equivalent to 50% of the subsidy saved. Currently, no incentives have been disbursed. The scheme is funded by savings in fertilizer subsidies, and grants for future years are contingent on the proper utilization of previous grants, requiring Action Plans and Utilization Certificates.
**Key Points / Main Content**
* **Scheme Objective:** To incentivize States/UTs to reduce chemical fertilizer use and promote sustainable agriculture through alternative practices.
* **Incentive Mechanism:** Financial incentives are provided for reducing consumption of chemical fertilizers (Urea, DAP, NPK, MOP) compared to the average of the previous three financial years.
* **Incentive Amount:** The incentive is equivalent to 50% of the fertilizer subsidy saved due to the reduction in consumption.
* **Grant Allocation:** 95% of the total incentive grant is allocated to the State/UT, while the remaining 5% is for monitoring, Information, Education and Communication (IEC), research, capacity building, and reward purposes.
* **Funding:** The scheme is funded through savings in fertilizer subsidies resulting from reduced chemical fertilizer consumption.
* **State/UT Requirements:** States and UTs must submit Action Plans at the beginning of each financial year detailing proposed grant utilization. Utilization Certificates must be submitted at the end of the financial year.
* **Grant Dependency:** Future grants are dependent on the proper utilization of previous grants.
* **Current Status:** No incentives have been disbursed to States or Union Territories under the PM-PRANAM Scheme to date.
* **Promoted Practices:** Initiatives include encouraging adoption of alternative fertilizers (organic, bio, nano), support for natural and organic farming, promotion of resource conservation technologies (micro-irrigation, zero tillage), and adoption of Integrated Nutrient Management (INM).
* **Leveraged Schemes:** Existing schemes like Paramparagat Krishi Vikas Yojana (PKVY) and Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) are leveraged for organic farming, and National Mission on Natural Farming (NMNF) for natural farming.
* **Progress under Related Schemes:** Significant progress has been reported under PKVY, MOVCDNER, and NMNF, covering substantial hectares and farmer enrollments.
**Impact Analysis**
* **States/Union Territories**
* **Impact:** States and UTs are financially incentivized to reduce chemical fertilizer usage and adopt sustainable agricultural practices. They will receive grants based on demonstrated reductions in chemical fertilizer consumption.
* **Action Required:** Submit Action Plans detailing proposed grant utilization at the beginning of each financial year. Submit Utilization Certificates at the end of each financial year.
* **Farmers**
* **Impact:** Farmers may benefit from the promotion of alternative and sustainable agricultural practices, potentially leading to improved soil health and eco-friendly agriculture.
* **Action Required:** Adopt alternative fertilizers and sustainable agricultural practices as encouraged by the scheme and related government initiatives.
* **Ministry of Chemicals and Fertilizers / Department of Fertilizers**
* **Impact:** Responsible for the implementation, monitoring, and disbursement of the PM-PRANAM Scheme. Will manage the allocation of incentive grants and oversee the utilization of funds.
* **Action Required:** Monitor the progress of States/UTs in reducing chemical fertilizer consumption and utilizing grants. Disburse incentives based on performance and adherence to scheme guidelines.
* **Department of Agriculture and Farmers Welfare**
* **Impact:** Is informing about the progress made under related schemes like PKVY, MOVCDNER, and NMNF, which are leveraged by PM-PRANAM.
* **Action Required:** Continue to report progress on ongoing schemes that support the objectives of PM-PRANAM.
Key Entities Referenced
PM-PRANAM Scheme: Scheme incentivizing States/UTs to reduce chemical fertilizer use and promote sustainable agriculture.
Paramparagat Krishi Vikas Yojana (PKVY): Government of India scheme leveraged for promotion of organic agriculture.
Mission Organic Value Chain Development for North Eastern Region (MOVCDNER): Government of India scheme leveraged for promotion of organic agriculture.
National Mission on Natural Farming (NMNF): Government of India scheme leveraged for promotion of natural farming.
Jagat Prakash Nadda: Union Minister of Chemicals & Fertilizers who provided details regarding the PM-PRANAM Scheme.
Ministry of Chemicals and Fertilizers :
Department of Fertilizers
PM-PRANAM Scheme: Incentivising States/UTs
to Reduce Chemical Fertilizer Use and Promote
Sustainable Agriculture
Significant Progress Achieved Under PKVY and MOVCDNER
with Over 21 Lakh Hectares Covered
Posted On: 13 MAR 2026 4:23PM by PIB Delhi
In response to Lok Sabha Starred Question No. *211 raised by Shri Dineshbhai Makwana and Shri Bibhu
Prasad Tarai, Union Minister of Chemicals & Fertilizers, Shri Jagat Prakash Nadda, provided details
regarding the PM-PRANAM (Promotion of Alternate Nutrients for Agriculture Management) Scheme in
the Lok Sabha.
Shri Jagat Prakash Nadda informed that under the PM-PRANAM Scheme, there is a provision to provide
financial incentives to States and Union Territories for reducing the consumption of chemical fertilizers
such as Urea, DAP, NPK and MOP in a given financial year compared to the average consumption over
the previous three years. The incentive amount is equivalent to 50% of the fertilizer subsidy saved due to
the reduction in consumption of chemical fertilizers.
The Minister further stated that out of the total incentive grant, 95% will be allocated to the concerned
State/UT, while the remaining 5% will be utilized for monitoring, Information, Education and
Communication (IEC), research, capacity building and reward purposes.
Shri Jagat Prakash Nadda informed that the PM-PRANAM Scheme is funded through savings in fertilizer
subsidy arising from reduced consumption of chemical fertilizers. As per the scheme guidelines, States
and UTs are required to submit Action Plans at the beginning of each financial year detailing the proposed
utilization of grants. At the end of the financial year, Utilization Certificates must be submitted, and grants
for subsequent years are dependent on the proper utilization of the previous grants.
The Minister further informed that no incentives have been disbursed to States or Union Territories under
the PM-PRANAM Scheme so far.
Highlighting the objectives of the scheme, Shri Jagat Prakash Nadda stated that PM-PRANAM
incentivises States and UTs to reduce the use of chemical fertilizers and promote alternative and
sustainable agricultural practices through several initiatives, including:
I. Encouraging adoption of alternative fertilizers such as organic, bio, and nano fertilizers for
eco-friendly agriculture.
II. Extending support for natural and organic farming practices.
III. Promoting resource conservation technologies such as micro-irrigation and zero tillage.IV. Encouraging adoption of Integrated Nutrient Management (INM) practices for maintaining soil
fertility and ensuring optimum plant nutrient supply.
V. Promoting and leveraging existing Government of India schemes such as Paramparagat Krishi
Vikas Yojana (PKVY) and Mission Organic Value Chain Development for North Eastern
Region (MOVCDNER) for promotion of organic and National Mission on Natural Farming
(NMNF) for promotion of natural farming.
The Department of Agriculture and Farmers Welfare has informed that significant progress has been made
under these schemes. Under PKVY (as on 31 December 2025), 18.84 lakh hectares area has been covered
and 33.93 lakh farmers have benefited since the scheme’s inception in 2015–16. Under MOVCDNER (as
on 31 December 2025), 2.36 lakh hectares area has been covered and 2.70 lakh farmers have benefited
since its inception in 2015–16.
Further, under the National Mission on Natural Farming (NMNF) scheme (as on 9 February 2026), 8.57
lakh hectares area has been covered and 17.45 lakh farmers have been enrolled.
State/UT-wise details of the area covered and the number of farmers enrolled under the National Mission
on Natural Farming (NMNF) scheme (as on 09 February 2026) are provided in the Annexure.
Annexure
Annexure referred to in reply to part (d) of Lok Sabha Starred Question No. 211 for answering on
13.02.2026.
Sl. No. States/UTs Farmer Enrolment Area covered (in Ha)
1 Andaman & Nicobar Islands 250 100
2 Andhra Pradesh 407373 272847.47
3 Arunachal Pradesh 453 130.68
4 Assam 3721 2581.68
5 Bihar 50008 21253.51
6 Chhattisgarh 55061 23574.91
7 Dadra & Nagar Haveli and Daman & 0 0
Diu
8 Delhi 375 150
9 Goa 1545 607.33
10 Gujarat 86862 42155.09
11 Haryana 10325 9098.1912 Himachal Pradesh 61752 21981.62
13 Jammu & Kashmir 19387 6619.25
14 Jharkhand 11201 4498.67
15 Karnataka 122731 65072.1
16 Kerala 16530 6162.97
17 Ladakh 563 208.86
18 Madhya Pradesh 142676 82933.59
19 Maharashtra 136085 37901.21
20 Manipur 6316 2680.87
21 Meghalaya 5902 2066.62
22 Mizoram 13016 8361.46
23 Nagaland 7212 3158.72
24 Odisha 60415 24044.91
25 Puducherry 747 249.25
26 Punjab 5104 1768.24
27 Rajasthan 206492 90242.67
28 Tamil Nadu 5819 2613.23
29 Telangana 61173 35774.89
30 Tripura 13604 5218.94
31 Uttar Pradesh 210774 73732.32
32 Uttarakhand 22481 9522.03
33 West Bengal 0 0Total 1745953 857311.28
******
Neeraj Kumar Bhatt/Shatrughna Prasad/Amit
cmc.fertilizers[at]gmail[dot]com
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