The Union Cabinet has approved the continuation of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA scheme).
Why PM-AASHA Scheme is in news?
- The PM-AASHA Scheme will have a budget of ₹35,000 crore during the 15th Finance Commission Cycle, which extends until 2025-26.
- This umbrella scheme will include various schemes such as price support system, Price Stabilization Fund (PSF), Price Deficiency Payment Scheme (PDPS), and Market Intervention Scheme (MIS).
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About Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)
- Launch Year: 2018
- It is an umbrella scheme designed to ensure that farmers receive fair prices for their agricultural produce.
- Nodal Ministry: The Ministry of Agriculture and Farmers Welfare
- Objective
Support for Farmers: Aims to provide better prices for farmers’ produce.- Consumer Protection: Aims to control price volatility of essential commodities for consumers.
- Components of PM-AASHA:
- Price Support Scheme (PSS)
- Goal: To buy pulses, oilseeds, and copra directly from farmers.
- Price Stabilization Fund (PSF)
- Helps maintain a buffer stock of pulses and onions to control price volatility.
- Enables procurement when prices exceed MSP to protect consumers.
- Price Deficit Payment Scheme (PDPS)
- Coverage: Includes all oilseeds with a notified Minimum Support Price (MSP).
- Process: Farmers receive direct payments of the difference between the MSP and the market price for their registered sales.
- Coverage expanded from 25% to 40% of state oilseed production.
- Implementation period extended from 3 to 4 months.
- Central government will cover 15% of MSP as compensation.
- Market Intervention Scheme (MIS)
- Increased coverage from 20% to 25% of production for perishable crops.
- Introduces direct payments to farmers instead of physical procurement.
- For Tomato, Onion, and Potato (TOP) crops, the government will cover transportation and storage costs to ensure fair prices
Benefits of the PM-AASHA Scheme
The PM-AASHA scheme offers several key benefits:
- Innovative Pricing Solution: Provides a creative approach to ensure farmers receive fair prices above the Minimum Support Price (MSP).
- Boosts Rural Economy: Helps revitalise the rural economy by increasing farmers’ income.
- Encourages Crop Diversification: Promotes crop diversification and alleviates soil and water stress by enhancing oilseed prices.
- Streamlined Processes: Reduces the need for physical procurement, storage, and disposal of crops.
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September 20, 2024
