PM-AASHA Scheme, Know Full Form, Launch Date, Components, Objectives

Madhavi Gaur February 20, 2025 08:05 7692 0

PM-AASHA Scheme supports farmers with assured MSP procurement. Understand how the PM-AASHA Scheme helps in price stability, reducing distress sales, and enhancing market efficiency.

PM-AASHA Scheme, Know Full Form, Launch Date, Components, Objectives

PM-AASHA Scheme (Pradhan Mantri Annadata Aay SanraksHan Abhiyan) is a government initiative aimed at ensuring remunerative prices for farmers. Launched in September 2018, this scheme strengthens the procurement process for pulses, oilseeds, and copra, addressing concerns related to price fluctuations and market instability. The scheme is administered under the Ministry of Agriculture & Farmers Welfare, making it a vital part of India’s agricultural policy.

This detailed overview will explore what is PM-AASHA Scheme, its objectives, components, features, and significance for Indian farmers.

What is the PM-AASHA Scheme?

The PM-AASHA Scheme or Pradhan Mantri Annadata Aay SanraksHan Abhiyan, which translates to the Prime Minister’s Farmer Income Protection Campaign is an umbrella initiative designed to guarantee Minimum Support Price (MSP) for key agricultural commodities. 

PM-AASHA provides price assurance to farmers and helps mitigate market risks by ensuring that essential crops are procured at fair prices. It primarily focuses on pulses, oilseeds, and copra to encourage farmers to grow these crops and reduce post-harvest distress sales.

PM-AASHA scheme consists of three main components:

  1. Price Support Scheme (PSS) – Physical procurement of crops at MSP.
  2. Price Deficiency Payment Scheme (PDPS) – Direct payment of the price difference between MSP and selling price.
  3. Market Intervention Scheme (MIS) – Stabilizing prices for perishable commodities like tomatoes, onions, and potatoes.

PM-AASHA Scheme Overview
Feature Details
Full Form Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)
PM-AASHA Launch Date September 2018
Administering Ministry Ministry of Agriculture & Farmers Welfare
Objective Ensure remunerative prices to farmers, reduce price volatility, and strengthen procurement operations for pulses, oilseeds, and copra.
PM-AASHA Scheme is Related To Price assurance and procurement of pulses, oilseeds, and copra.
Crops Covered Pulses, Oilseeds, and Copra meet Fair Average Quality (FAQ) standards.
Procurement Agencies NAFED, FCI, NCCF, and State Agencies
PM-AASHA Components 1. Price Support Scheme (PSS)

2. Price Deficiency Payment Scheme (PDPS)

3. Market Intervention Scheme (MIS)

Beneficiaries Pre-registered farmers selling directly at Minimum Support Price (MSP) through state agencies.
Payment Mechanism Direct payment to farmers for price difference under PDPS; direct procurement at MSP under PSS.
Key Update (2024-25) Procurement of Tur, Urad, and Masur under PSS up to 100% of the state’s production.
Flexibility for States/UTs Option to choose between PSS and PDPS for oilseeds procurement each year.
Market Intervention for Perishables Implemented when prices of perishable crops (e.g., Tomato, Onion, Potato) fall by at least 10% from the previous season.
Challenges Limited implementation, inadequate storage, procurement constraints, and budgetary concerns.
Continuation Approved for continuation till 2025-26 under the 15th Finance Commission Cycle.

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PM-AASHA Scheme Objective

The primary objective of the PM-AASHA Yojana is to:

  • Ensure price support for farmers by guaranteeing MSP benefits.
  • Reduce post-harvest distress selling by offering direct financial compensation.
  • Promote crop diversification towards pulses and oilseeds to reduce dependency on imports.
  • Enhance domestic production of pulses and oilseeds, ensuring food security and economic stability.
  • Ensuring procurement transparency through direct payments.

The PM-AASHA Scheme is related to agricultural price support and farmer income security. It aligns with the government’s broader goal of:

  • Doubling farmers’ income.
  • Promoting crop diversification.
  • Ensuring food security by stabilizing essential crop production.

PM-AASHA Launch Date and Ministry Oversight

The PM-AASHA Scheme was launched in September 2018 under the Ministry of Agriculture & Farmers Welfare and is implemented in collaboration with state agencies and central nodal agencies like:

  • National Agricultural Cooperative Marketing Federation of India (NAFED)
  • Food Corporation of India (FCI)
  • National Consumer Cooperative Federation of India (NCCF)

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PM-AASHA Scheme Components

The PM-AASHA Yojana consists of three major components, each designed to address different aspects of agricultural price support:

1. Price Support Scheme (PSS)

  • Implemented when market prices fall below MSP, with the assistance of state-level agencies.
  • Procurement of pulses, oilseeds, and copra by NAFED, NCCF, and FCI.
  • Farmers receive payments directly through DBT (Direct Benefit Transfer).
  • Farmers must pre-register to participate in procurement.

2. Price Deficiency Payment Scheme (PDPS)

  • No physical procurement; farmers receive the price difference between MSP and market price.
  • Only applies to oilseeds and is implemented at the discretion of states.
  • Farmers must be pre-registered to receive benefits.
  • The price difference can be up to 15% of the MSP value.

3. Market Intervention Scheme (MIS)

  • Focuses on perishable commodities like tomatoes, onions, and potatoes.
  • Activated when prices drop 10% or more compared to previous seasons.
  • Aims to reduce wastage, stabilize market prices and protect farmers from losses.

PM-AASHA Scheme Features

The PM-AASHA Scheme features make it an important part of India’s agricultural policy. Some key highlights include:

  • Crops Covered: Pulses, oilseeds, and copra (must meet Fair Average Quality standards).
  • Procurement Agencies: National Agricultural Cooperative Marketing Federation of India (NAFED), Food Corporation of India (FCI), and other designated state agencies.
  • Flexibility for States/UTs: Each state can choose between PSS and PDPS annually for oilseeds.
  • Direct Payment to Farmers: Funds are transferred directly to farmers’ bank accounts to ensure transparency.
  • Boost to Pulses and Oilseeds: 100% procurement of Tur, Urad, and Masur under PSS for the 2024-25 procurement cycle to promote self-sufficiency.

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Recent Updates on PM-AASHA (2024-25)

The Government of India has extended the PM-AASHA Scheme until 2025-26, enhancing its components to include the Price Support Scheme (PSS), Price Stabilization Fund (PSF), Price Deficiency Payment Scheme (PDPS), and Market Intervention Scheme (MIS). Along with it Government implemented and focused on the: 

  • Procurement of Tur, Urad, and Masur will continue at 100% of state production.
  • Union Minister Shri Shivraj Singh Chouhan approved 13.22 LMT of Tur procurement across multiple states.
  • Procurement for Kharif 2024-25 has already begun in Andhra Pradesh, Karnataka, Maharashtra, and Telangana.
  • 6.41 LMT of pulses and 12.19 LMT of oilseeds procured in Rabi 2023-24 benefiting over 5.29 lakh farmers.
  • Soybean procurement hit a record 5.62 LMT, proving the scheme’s effectiveness.

PM-AASHA Scheme Success and Challenges

PM-AASHA Scheme has played an important role in providing price assurance to farmers and stabilizing the market for pulses, oilseeds, and copra:

Successes

  • Massive farmer participation: Since 2018-19, over 99.3 lakh farmers have benefited.
  • MSP Procurement: 195.39 LMT of pulses, oilseeds, and copra have been procured at ₹1.07 lakh crore MSP value.
  • Highest-ever soyabean procurement in 2024: 5.62 LMT procured at ₹2,700 crore, benefiting 2.42 lakh farmers.
  • Market stabilization: The scheme has reduced price volatility for essential commodities.

While it has benefited millions of farmers through MSP procurement and price deficiency payments, challenges such as:

Challenges

  • Limited crop coverage: Only pulses, oilseeds, and copra are included, leaving other crops vulnerable.
  • Inadequate storage and logistics: Poor infrastructure makes large-scale procurement difficult.
  • Low adoption of PDPS: States prefer direct procurement under PSS, leading to uneven implementation.
  • Bureaucratic hurdles: Many farmers face challenges in registration and timely payment.

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Conclusion

The PM-AASHA Scheme is a crucial step towards farmer income security and agricultural market reform. By ensuring MSP-based procurement and offering price deficiency payments, the scheme provides financial stability to farmers. However, expanding crop coverage, improving storage facilities, and simplifying the registration process will be key to making the scheme more effective in the coming years.

 

PM-AASHA Scheme FAQs

The PM-AASHA Scheme ensures MSP-based procurement for farmers, reducing distress sales and enhancing income security.

It guarantees Minimum Support Price (MSP) through various procurement mechanisms, securing fair prices for crops.

It includes the Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS), and Private Procurement & Stockist Scheme (PPSS).

All registered farmers growing MSP-notified crops can benefit from the scheme’s procurement and price support.

PDPS compensates farmers for selling crops below MSP by paying the price difference directly into their bank accounts.

Yes, under PPSS, private entities can procure crops at MSP, ensuring better market participation and price realization.
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