Biofertilizer scheme gets Cabinet nod; sugarcane FRP hiked

  • June 29, 2023
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Biofertilizer scheme gets Cabinet nod; sugarcane FRP hiked

Subject: Schemes

Context:

  • The Cabinet Committee on Economic Affairs (CCEA) approved the PM-PRANAM (PM Programme for Restoration, Awareness, Generation, Nourishment and Amelioration of Mother Earth) scheme.

Urea subsidy scheme:

  • The CCEA also approved the continuation of the urea subsidy scheme to ensure constant availability of urea to the farmers at the same price of ₹242/ 45 kg per bag.

PM- PRANAM Scheme:

  • Objectives: To encourage the balanced use of fertilisers in conjunction with bio fertilisers and organic fertilisers.
  • Aim: To bring down the subsidy burden on chemical fertilisers, which is estimated to reach Rs 2.25 lakh crore in 2022-23 — 39% higher than 2021 figure of Rs 1.62 lakh crore.
  • The new scheme would promote the use of nutrient-based, biofertilizers for sustainable agriculture and it would have a total outlay of ₹3,70,128.7 crore.
    • Out of the above-approved package, ₹3,68,676.7 crore has been committed for urea subsidy for three years. This is apart from the recently approved nutrient-based subsidy of ₹38,000 crore for the Kharif season for 2023-24.
  • Features of the Scheme:
    • The scheme will have no separate budget and will be financed through the “savings of existing fertiliser subsidy” under schemes run by the Department of Fertilizers.
    • 50% of subsidy savings will be passed on as a grant to the state that saves the money.
    • 70% of the grant provided under the scheme can be used for asset creation related to the technological adoption of alternate fertilisers and alternate fertiliser production units at the village, block and district levels.
    • The remaining 30% of grant money can be used for rewarding and encouraging farmers, panchayats, farmer producer organisations and self-help groups that are involved in the reduction of fertiliser use and awareness generation.
    • The calculation of reducing the chemical fertiliser use of urea in a year will be compared to the average consumption of urea during the last three years.
    • For this purpose, data available on a Fertilizer Ministry dashboard, IFMS (Integrated Fertilizers Management System) will be used.

Benefits to sugarcane farmers:

  • The CCEA also hiked the Fair and Remunerative Price (FRP) of sugarcane by ₹10 per quintal.
  • The FRP for the sugar season 2023-24 (October-September) will be ₹315 per quintal for a basic recovery rate of 10.25%. Last year, the amount was ₹305.
  • The CCEA also decided to provide a premium of ₹ 3.07 per quintal for each 0.1% increase in recovery over and above 10.25%, and a reduction in FRP by ₹ 3.07 per quintal for every 0.1% decrease in recovery (sugar produced from the sugarcane).
  • The Centre has calculated the cost of production of sugarcane as ₹ 157 per quintal based on the inputs from States and the Commission on Agricultural Costs and Prices (CACP).
  • This FRP of ₹ 315 per quintal at a recovery rate of 10.25% is higher by 100.6% over production cost. The FRP for sugar season 2023-24 is 3.28% higher than the current sugar season 2022-23.

Few initiatives in news:

Initiatives in newsDescription
GOBAR (Galvanizing Organic Bio-Agro Resources) – DHAN scheme.Recent Developments:

  •  ₹1,451.84 crores has been approved for Market Development Assistance (MDA) for promoting organic fertilizers from Gobardhan plants.
  • Fermented Organic Manures (FOM)/Liquid FOM/Phosphate Rich Organic Manures (PROM) produced as by-products from bio-gas plants/Compressed Biogas (CBG) plants set up under the umbrella Gobardhan initiative will be promoted.
  • Such organic fertilizers would be branded in the names of Bharat Brand FOM, LFOM and PROM.
  • The benefits include:
    • Management of crop residue
    • Reduction in stubble burning
    • Clean and safe environment
    • An additional source of income for farmers

About the scheme:

  • Ministry of Jalshakti dept of Drinking Water & Sanitation has launched the GOBAR (Galvanizing Organic Bio-Agro Resources) – DHAN scheme.
  • The scheme is being implemented as part of the Swachh Bharat Mission (Gramin).
  • It was launched in 2018.

Aims:

  • The scheme aims to augment the income of farmers by converting biodegradable waste into compressed biogas (CBG).
  • The initiative aims at attracting entrepreneurs for establishing community-based CBG plants in rural areas.
  • The scheme aims to positively impact village cleanliness and generate wealth and energy from cattle and organic waste.
  • The scheme also aims at creating new rural livelihood opportunities and enhancing income for farmers and other rural people.
Nano FertilizersRecent developments:

  • The use of nano urea has increased in the country. By 2025-26, eight nano urea plants with a production capacity of 44 crore bottles, equalling 195 lakh tonnes of conventional urea, will be commissioned.

Nano Urea Liquid:

  • Nano urea liquid was developed in 2022 by Indian Farmers and Fertiliser Cooperative (IFFCO) to replace conventional urea and reduce its requirement by 50%.
  • The government has heavily promoted the use of nano fertilisers since its development.

About Nano fertilizers:

  • Nano fertilisers are highly efficient types of fertilisers that provide nutrients like nitrogen to crops through fine granules.
  • Nitrogen is an essential macronutrient for plant functions, and urea is one of the most concentrated nitrogenous fertilisers.
Ethanol Blending ProgrammeRecent Developments:

  • The level of ethanol blending in petrol in India has reached 9.99%.
  • In 2022-23, about 3,353 lakh tons of sugarcane of worth ₹1,11,366 crore were purchased by sugar mills.
  • A part of this is used for ethanol production too.

What is Ethanol Blending?

  • Ethanol: It is one of the principal biofuels, which is naturally produced by the fermentation of sugars by yeasts or via petrochemical processes such as ethylene hydration.
  • Ethanol Blending Programme (EBP): It is aimed at reducing the country’s dependence on crude oil imports, cutting carbon emissions and boosting farmers’ incomes.
  • Blending Target: The Government of India has advanced the target for 20% ethanol blending in petrol (also called E20) to 2025 from 2030.
  • The Ethanol Blended with Petrol (EBP) Programme has:
    • Saved foreign exchange
    • Strengthen the energy security of the country
    • Reduced dependence on imported fossil fuel
    • Helping in achieving the goal of Atmanirbhar Bharat in the petroleum sector.
Fair and Remunerative Price (FRP) for SugarcaneWhat is the FRP?

  • FRP is the price declared by the government, which mills are legally bound to pay to farmers for the cane procured from them.
  • Mills have the option of signing an agreement with farmers, which would allow them to pay the FRP in instalments.
  • Delays in payment can attract an interest up to 15% per annum, and the sugar commissioner can recover unpaid FRP as dues in revenue recovery by attaching properties of the mills.
  • The payment of FRP across the country is governed by the Sugarcane Control order, 1966 issued under the Essential Commodities Act (ECA), 1955 which mandates payment within 14 days of the date of delivery of the cane.
  • It has been determined on the recommendation of the Commission for Agricultural Costs and Prices (CACP) and announced by the Cabinet Committee on Economic Affairs (CCEA).
    • CACP is an attached office of the Ministry of Agriculture and Farmers Welfare. It is an advisory body whose recommendations are not binding on the Government.
    • CCEA is chaired by the Prime Minister of India.
  • The FRP is based on the Rangarajan Committee report on reorganizing the sugarcane industry.

Which Factors are considered for announcing FRP?

  • Cost of production of sugarcane
  • Return to the growers from alternative crops and the general trend of prices of agricultural commodities
  • Availability of sugar to consumers at a fair price
  • Price at which sugar produced from sugarcane is sold by sugar producers
  • Recovery of sugar from sugarcane
  • The realization made from the sale of by-products viz. molasses, bagasse and press mud or their imputed value
  • Reasonable margins for the growers of sugarcane on account of risk and profits

How is FRP Paid?

  • The FRP is based on the recovery of sugar from the cane.
  • FRP has been fixed at Rs 2,900/tonne at a base recovery of 10% for the sugar season of 2021-22.
  • Sugar recovery is the ratio between sugar produced versus cane crushed, expressed as a percentage.
  • The higher the recovery, the higher the FRP, and the higher is the sugar produced.

Biofertilizers

  • Biofertilizers are defined as preparations containing living cells or latent cells of efficient strains of microorganisms that help crop plants’ uptake of nutrients by their interactions in the rhizosphere when applied through seed or soil.
  • They accelerate certain microbial processes in the soil which augment the extent of availability of nutrients in a form easily assimilated by plants.

They can be grouped in different ways based on their nature and function:

S. No.GroupsExamples
N2  fixing Biofertilizers
1.Free-livingAzotobacter, Beijerinkia, Clostridium, Klebsiella, Anabaena, Nostoc,
2.SymbioticRhizobium, Frankia, Anabaena azollae
3.Associative SymbioticAzospirillum
P Solubilizing Biofertilizers
1.BacteriaBacillus megaterium var. phosphaticum, Bacillus subtilis
Bacillus circulans, Pseudomonas striata
2.FungiPenicillium sp, Aspergillus awamori
P Mobilizing Biofertilizers
1.Arbuscular mycorrhizaGlomus sp.,Gigasporasp.,Acaulospora sp.,
Scutellospora sp. &Sclerocystis sp.
2.EctomycorrhizaLaccaria sp., Pisolithus sp., Boletus sp., Amanita sp.
3.Ericoid mycorrhizaePezizellaericae
4.Orchid mycorrhizaRhizoctonia solani
Biofertilizers for Micro nutrients
1.Silicate and Zinc solubilizersBacillus sp.
Plant Growth Promoting Rhizobacteria
1.PseudomonasPseudomonas fluorescens
Biofertilizer scheme gets Cabinet nod; sugarcane FRP hiked Schemes