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

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:

1. Encouraging adoption of alternative fertilizers such as organic, bio, and nano fertilizers for eco-friendly agriculture.
2. 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.

1. 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.