Cabinet approves ₹3.68 trillion for Urea subsidy schemes for 3 years

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a bouquet of fertiliser schemes, including PRANAM scheme and Urea Gold scheme, to boost wellbeing of farmers, rejuvenate soil productivity, and ensure food security and environmental sustainability with a total allocation of nearly ₹3.70 trillion.

Promotion of Alternate Nutrients for Agriculture Management Yojana (PRANAM) aims to promote balanced use of fertilisers along with bio-fertilisers. The Urea Subsidy scheme aims to ensure constant availability of urea to farmers at the same price of ₹242/45 kg bag for the next three years. The scheme is wholly financed by the Centre through budgetary support. The actual cost of a bag comes around ₹2,200. The allocation is over and above the recently approved Nutrient Based Subsidy of ₹38,000 crore for 2023-24 Kharif season.

“The farmers need not spend extra for purchase of urea, and this will help moderate their input costs," Union minister Mansukh Mandaviya told reporters after the Cabinet meeting. “The continuation of Urea Subsidy scheme will also maximise indigenous production of Urea to reach self-sufficiency levels." Mandaviya also said that eight nano urea plants with production capacity of 44 crore bottles of conventional urea will be commissioned by 2025-26. “Nano urea plants will reduce our current import dependency in urea and finally make us self-sufficient by 2025- 26."

Production of urea has increased to 284,000 tonne in 2022-23 from 225,000 tonnes in 2014-15. Nano fertilisers release nutrients in a controlled manner contributing to higher nutrient use efficiency and while costing less to the farmers. Application of nano urea has demonstrated increase in crop yield, the minister added.

The Union Cabinet also approved ₹1451.84 crore for market development assistance (MDA) to promote organic fertilisers from Gobardhan plants. Organic fertilisers will help address the challenge of management of crop residue and problems of stubble burning, and keeping the environment clean and safe. It will also provide an additional source of income for farmers as they will get organic fertilisers at affordable prices.

The Cabinet also introduced sulphur-coated urea (Urea Gold) to address the issue of sulphur deficiency of soil and save input costs for farmers.

“IFFCO welcomes cabinet approval of 3.68 lakh crore package of Urea subsidy, PM – PRANAM Yojana, Market Development Assistance (MDA) for organics and promotion of alternative and balanced fertilizer usage. This is a courageous and resolute step in the direction of AATMANIRBHAR KRISHI & AATMANIRBHAR BHARAT through which alternative fertilizers like Nano Urea, Nano DAP, Sulphur coated urea (SCU), Organic fertilizers will be promoted to save our mother earth and environment. On the other hand, food and nutritional security of the nation will also not be compromised. Hon’ble Prime Minister has strengthened the hands of the farmers of the nation through this package which will also create conducive environment for alternative fertilisers like nanofertilisers and organic fertilisers.” says press release issued by IFFCO.