Continuation of PM-AASHA

The Union Cabinet recently approved the continuation of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) scheme with an allocation of ₹35,000 crore.

Details on Continuation of PM-AASHA Scheme:

• This initiative aims to provide better prices to farmers while managing the price volatility of essential commodities for consumers.
• The scheme focuses on ensuring remunerative prices for farmers and stabilizing the market prices of essential goods to make them affordable for consumers.
• This extension aims to protect consumers from extreme price volatility in agricultural commodities by maintaining strategic buffer stocks of items like pulses and onions.
• It will also help to prevent hoarding and ensure stable market conditions.
• Components: PM-AASHA has integrated several existing schemes:
  • Price Support Scheme (PSS)
  • Price Stabilization Fund (PSF)
  • Price Deficit Payment Scheme (PDPS)
  • Market Intervention Scheme (MIS)

Existing schemes expansion:

• The total financial commitment for the scheme is set at ₹35,000 crore, designed to bolster agricultural income and enhance the efficiency of price support mechanisms.
• The coverage of the Price Deficit Payment Scheme has increased from 25% to 40% of state production for oilseeds, with the implementation period extended from 3 to 4 months.
• Compensation for differences between MSP and market prices will now be capped at 15% of the MSP.
• The MIS has expanded its coverage from 20% to 25% of production for perishable horticulture crops.
• Farmers will receive direct payments instead of physical procurement, enhancing the efficiency of support measures.
• For tomato, onion, and potato (TOP) crops, the government will bear transportation and storage costs during peak harvest times to ensure fair prices for both farmers and consumers.

Procurement Policies:

• The government will procure notified pulses, oilseeds, and copra at the Minimum Support Price (MSP) based on 25% of the national production for the 2024-25 season.
• Notably, for Tur, Urad, and Masur, there will be 100% procurement to ensure farmers receive fair prices.
• The government renewed its procurement guarantee to ₹45,000 crore, allowing for greater acquisition of these crops to support farmers against market fluctuations.

Ref: Source

Frequently Asked Question: