The Union Cabinet has approved continuing the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) scheme with a financial outlay of ₹35,000 crore until 2025-26. This move aims to provide remunerative prices to farmers and manage the price volatility of essential commodities, ensuring both farmers and consumers benefit.
Key Details of the PM-AASHA Scheme
The PM-AASHA scheme integrates several components to safeguard farmers’ incomes and stabilize the prices of agricultural goods. These include:
- Price Deficit Payment Scheme (PDPS): This scheme compensates farmers if the market price of their produce falls below the Minimum Support Price (MSP).
- Price Support Scheme (PSS): The government purchases crops directly from farmers at MSP to support them during price fluctuations.
- Price Stabilization Fund (PSF): Aims to stabilize the prices of essential commodities like pulses and onions.
- Market Intervention Scheme (MIS): This helps manage price volatility for perishable horticultural crops, providing support for storage and transportation.
Financial Allocation and Coverage
The scheme has an allocated budget of ₹35,000 crore for the 15th Finance Commission Cycle up to 2025-26. One of the significant changes includes raising the coverage of oilseeds under the PDPS from 25% to 40% of state production. The procurement ceiling for certain pulses like Tur and Urad will also be removed for the 2024-25 season, allowing for 100% procurement at MSP.
Global and National Impact
This decision is expected to boost domestic agricultural production, reduce the country’s reliance on imports, and encourage farmers to cultivate more oilseeds and pulses. By stabilizing prices, the scheme will also help in controlling inflation, benefiting consumers by making essential commodities more affordable.
Aims of the PM-AASHA Scheme
This aims to:
- Provide fair prices to farmers by ensuring they receive MSP for their produce.
- Stabilize the market by managing the supply and demand of essential commodities.
- Reduce import dependence and enhance domestic production.
- Encourage the cultivation of pulses, oilseeds, and horticultural crops through market interventions.
Key Summary of the PM-AASHA Scheme
- The PM-AASHA scheme has been extended with a budget of ₹35,000 crore until 2025-26.
- The scheme integrates several components such as PDPS, PSS, PSF, and MIS.
- The government aims to boost domestic production and stabilize commodity prices.
- Certain pulses will see 100% procurement during the 2024-25 season.
- Increased support will be provided for oilseeds and perishable crops.
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This scheme aims to ensure farmers receive fair prices for their produce by guaranteeing Minimum Support Price (MSP) and managing price volatility.
The scheme covers pulses, oilseeds, and perishable horticultural crops like onions and tomatoes.
The scheme has a financial outlay of ₹35,000 crore until 2025-26.
PDPS compensates farmers if the market price of their produce is lower than the MSP, with the government covering the difference.
The PSF helps stabilize the prices of essential commodities by maintaining buffer stocks and controlling market supply.
