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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