PM AASHA Scheme (Pradhan Mantri Annadata Aay SanraksHan Abhiyan) Components And Challenges

Madhavi Gaur September 28, 2023 07:54 5874 0

The Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM AASHA Scheme) is a program designed to guarantee equitable prices for farmers and their agricultural products.

PM AASHA Scheme (Pradhan Mantri Annadata Aay SanraksHan Abhiyan)

PM AASHA Scheme: The Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM AASHA Scheme) is a program designed to guarantee equitable prices for farmers and their agricultural products. By enhancing the procurement process, the PM AASHA Scheme is poised to significantly augment farmers’ income.

This article will provide comprehensive information about the PM AASHA Scheme, particularly in the context of the IAS Exam.

Pradhan Mantri Annadata Aay SanraksHan Abhiyan, PM AASHA Scheme Components

The Government has given its approval to a new comprehensive scheme known as “Pradhan Mantri Annadata Aay Sanrakshan Abhiyan” (PM-AASHA). This scheme is designed to provide assurance of Minimum Support Prices (MSP) to farmers.

The primary objective of this scheme is to ensure that farmers receive fair and profitable prices for their agricultural produce, as outlined in the Union Budget for 2018. By strengthening the procurement process in collaboration with state governments, the PM-AASHA scheme aims to enhance farmers’ income.

The PM-AASHA scheme consists of the following components:

Price Support Scheme (PSS)

Under PSS, central nodal agencies will purchase pulses, oilseeds, and copra, with active involvement from state governments.
The Food Corporation of India (FCI) and the National Agricultural Cooperative Marketing Federation of India (NAFED) will be instrumental in implementing the scheme.
The central government will bear the procurement expenses and losses incurred during procurement.
The government will acquire 25% of the marketable surplus of farmers for eligible crops.
Approximately Rs 16,000 crores have been provisioned as a bank guarantee for agencies involved in farmer procurement.

Price Deficiency Payment Scheme (PDPS)

PDPS involves the state providing the difference between prices prevailing in agricultural markets (mandis) and the MSP.
All oilseeds fall under the purview of PDPS.
This scheme is modeled on the Bhawantar Bhugtan Yojana implemented by the Madhya Pradesh state government and Bhavantar Bharpai Yojana of the Haryana Government.
There will be no physical procurement of crops under PDPS.

Pilot of Private Procurement & Stockist Scheme (PPPS)

In select pilot districts, PPPS will be implemented as an alternative to PSS and PDPS.
Private agencies will procure oilseeds in coordination with the government.
The chosen private agency will purchase commodities at MSP in designated markets during specified periods when market prices fall below the MSP, with authorization from the state/UT government.

Pradhan Mantri Annadata Aay SanraksHan Abhiyan, PM AASHA Scheme Challenges and Concerns

The scheme doesn’t address the need for significant improvements in the country’s procurement infrastructure, which currently primarily supports only wheat and rice procurement.
Awareness among farmers regarding MSP and the scheme’s operation remains limited.
Challenges such as delayed payments, inadequate infrastructure at procurement centers, distance to these centers, and delayed MSP rate announcements persist.
Procurement infrastructure facilities in several states are considered inadequate.

Pradhan Mantri Annadata Aay SanraksHan Abhiyan, PM AASHA Scheme Other Pro-farmer Initiatives

The government is committed to doubling farmers’ income by 2022 through increased productivity, reduced cultivation costs, and improved post-harvest management.
Initiatives include Gramin Agricultural Markets (GrAMs), the National Agriculture Market (eNAM), and a pro-farmer export policy.
Additional programs such as Pradhan Mantri Fasal Bima Yojana, Pradhan Mantri Krishi Sinchai Yojana, Paramparagat Krishi Vikas Yojana, and distribution of Soil Health Cards have been launched.
The decision to set MSP based on a formula of 1.5 times the cost of cultivation reflects the government’s commitment to farmers’ welfare.

PM AASHA Scheme: The Way Forward

Improvements in procurement centers, including drying yards and weighing bridges, are essential.
Expansion and proper maintenance of storage facilities can reduce wastage.
Establishing procurement centers within villages can help reduce transportation costs.
Strengthening procurement infrastructure remains a critical recommendation for the success of this well-intentioned scheme for farmer welfare.

Food Corporation of India (FCI)

FCI was established under the Food Corporation’s Act of 1964 to support farmers’ interests through effective price support operations.
It is responsible for distributing foodgrains nationwide for the public distribution system and maintaining operational and buffer stocks for national food security.

National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED)

NAFED operates under the Multi-State Co-operative Societies Act and was established in 1958 to promote cooperative marketing of agricultural produce to benefit farmers.
It primarily consists of agricultural farmers as members who have a say in NAFED’s operations through the General Body.

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Central Government Schemes PM AASHA Scheme Scheme

PM AASHA Scheme FAQs

The PM AASHA Scheme, short for Pradhan Mantri Annadata Aay Sanrakshan Abhiyan, is an extensive program launched by the Indian government in September 2018. Its primary objective is to offer monetary support to farmers facing hardships resulting from crop failures.

The Pradhan Mantri Annadata AAY SanraksHan Abhiyan (PM-AASHA) was launched by the Government of India in September 2018. It was introduced as a comprehensive scheme to address the issues of price volatility and provide price support to farmers for their produce.

PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan) was a government initiative in India aimed at ensuring remunerative prices to farmers for their produce. The program had three main components: 1. Price Support Scheme (PSS): Under this component, the government would procure agricultural commodities directly from farmers at Minimum Support Prices (MSPs) to provide them with a guaranteed income. This was especially important for crops that did not find adequate market prices in open markets. 2. Price Deficiency Payment Scheme (PDPS): This component aimed to provide income support to farmers in cases where the selling price of their produce fell below the MSP. Farmers were compensated for the difference between the MSP and the market price directly into their bank accounts. 3. Private Procurement and Stockist Scheme (PPSS): The PPSS allowed private entities to procure agricultural commodities at MSPs when there was a surplus in production. This component aimed to involve private players in agricultural marketing and reduce the burden on government agencies for procurement.

According to the information provided, the funding for PM-AASHA has progressively decreased over the years, going from Rs 1,500 crore in the 2019-20 Union Budget to Rs 500 crore in 2020-21, then to Rs 400 crore in 2021-22, and it significantly decreased to just Rs 1 crore in 2022-23. The projected allocation for the program in the 2023-24 Budget Estimates is a mere Rs 1 lakh.

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PM AASHA Scheme (Pradhan Mantri Annadata Aay SanraksHan Abhiyan) Components And Challenges

PM AASHA Scheme (Pradhan Mantri Annadata Aay SanraksHan Abhiyan)

Pradhan Mantri Annadata Aay SanraksHan Abhiyan, PM AASHA Scheme Components

Price Support Scheme (PSS)

Price Deficiency Payment Scheme (PDPS)

Pilot of Private Procurement & Stockist Scheme (PPPS)

Pradhan Mantri Annadata Aay SanraksHan Abhiyan, PM AASHA Scheme Challenges and Concerns

Pradhan Mantri Annadata Aay SanraksHan Abhiyan, PM AASHA Scheme Other Pro-farmer Initiatives

PM AASHA Scheme: The Way Forward

Food Corporation of India (FCI)

National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED)

PM AASHA Scheme FAQs

What is the PM-AASHA Yojana scheme?

When was Pradhan Mantri Annadata AAY SanraksHan Abhiyan PM-AASHA launched?

What are the three components of PM-AASHA?

What is the budget of PM-AASHA scheme?

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