The PM-PRANAM (PM Programme for Restoration, Awareness, Generation, Nourishment and Amelioration of Mother Earth) scheme, which was promised in the previous Budget, has been approved by the Cabinet Committee on Economic Affairs (CCEA) on Wednesday. According to Union Fertilizer Minister Mansukh Mandaviya, the scheme aims to promote the sustainable use of nutrient-based, biofertilizers in agriculture. It has a total budget of Rs 3,70,128.7 crore.
Additionally, the CCEA has increased the Fair and Remunerative Price (FRP) of sugarcane by Rs 10 per quintal for the sugar season 2023-24. The new FRP will be Rs 315 per quintal for a basic recovery rate of 10.25%, compared to Rs 305 in the previous year.
Mandaviya explained that the PM-PRANAM scheme is focused on preserving soil and encouraging the balanced use of fertilizers. The scheme involves the participation of State governments, and the Central government plans to incentivize states that adopt alternative fertilizers by providing them with a subsidy from the savings achieved by reducing the use of chemical fertilizers.
For example, if a state reduces its consumption of conventional fertilizers by three lakh tonnes from a total of 10 lakh tonnes, the subsidy savings would amount to Rs 3,000 crores. The Centre will contribute 50% of this amount, to the state for promoting the use of alternative fertilizers and other development projects.
Benefits For Sugarcane Farmers
In a remarkable move showcasing their commitment to the welfare of sugarcane farmers, the CCA has announced an uplifting development regarding the Fair and Remunerative Price (FRP) of sugarcane. The decision, taken in the interest of the sugarcane farmers, aims to provide them with increased support and financial stability. The CCEA has not only raised the FRP but also introduced a unique premium system that rewards exceptional recovery rates.
Under this, a premium of Rs 3.07 per quintal will be granted for every 0.1% increase in recovery beyond 10.25%. Conversely, the FRP will be reduced by Rs 3.07 per quintal for any decline of 0.1% in recovery, ensuring fairness and balance in the industry. Moreover, to safeguard the interests of farmers who face challenges in achieving optimal recovery rates, the government has pledged that no deductions will be made for sugar mills where recovery falls below 9.5%. These dedicated farmers will receive an enhanced rate of Rs 291.975 per quintal in the upcoming sugar season of 2023-24, replacing the current rate of Rs 282.125 per quintal in the ongoing sugar season of 2022-23.
In a statement released by the government, it was emphasized that this decision not only benefits the farmers but also has far-reaching positive implications. By reducing the arrears owed to the farmers, the move ensures that sugar mills have sufficient funds to honour their commitments. This not only boosts the financial stability of the mills but also reinforces their ability to support the farmers who depend on their income.
Delving into the details, the Centre meticulously calculated the cost of production for sugarcane, arriving at a figure of Rs 157 per quintal. This meticulous evaluation was conducted in collaboration with the states and the esteemed Commission on Agricultural Costs and Prices (CACP). With this in mind, the revised FRP of Rs 315 per quintal, set at a recovery rate of 10.25%, showcases the government's unwavering dedication to the well-being of sugarcane farmers.
Notably, this revised FRP surpasses the production cost by an astounding 100.6%, exemplifying the government's steadfast commitment to ensuring a fair and prosperous agricultural sector. Furthermore, it is worth highlighting that the FRP for the upcoming sugar season of 2023-24 is 3.28% higher than the current season of 2022-23, signifying an upward trajectory and an optimistic outlook for the industry.
