The Union Cabinet on Wednesday approved the continuation of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) scheme, allocating Rs. 35,000 crore for the 15th Finance Commission Cycle up to 2025-26. This significant decision aims to ensure remunerative prices for farmers and manage price volatility of essential commodities for consumers.
The PM-AASHA scheme consolidates the Price Support Scheme (PSS) and Price Stabilization Fund (PSF) into a unified program to enhance its effectiveness. The integrated scheme will now include the Price Support Scheme (PSS), Price Stabilization Fund (PSF), Price Deficit Payment Scheme (PDPS), and Market Intervention Scheme (MIS). These components are designed to provide better support for farmers and stabilize prices for consumers.
Starting from the 2024-25 season, the procurement of notified pulses, oilseeds, and copra at Minimum Support Price (MSP) will cover 25% of national production. This change aims to increase the amount of these crops procured at MSP, reducing the risk of distress sales. Notably, the procurement ceiling will not apply to Tur, Urad, and Masur for the 2024-25 season, as the government plans a 100% procurement of these pulses.
The government has also renewed and increased its guarantee for the procurement of pulses, oilseeds, and copra, raising it to Rs. 45,000 crore. This move is expected to enhance the Department of Agriculture and Farmers Welfare’s (DA&FW) ability to buy these commodities from farmers at MSP, including those registered on the eSamridhi portal of the National Agricultural Cooperative Marketing Federation of India (NAFED) and the eSamyukti portal of the National Cooperative Consumers’ Federation of India (NCCF). This initiative aims to boost domestic production, reduce import dependency, and encourage cultivation of these crops.
The extension of the Price Stabilization Fund (PSF) scheme will help mitigate extreme price fluctuations of agri-horticultural commodities. By maintaining strategic buffer stocks of pulses and onions, the PSF aims to control hoarding and speculation, ensuring that consumers have access to affordable prices. The Department of Consumer Affairs (DoCA) will manage the procurement of pulses above MSP and maintain buffer stocks to stabilize prices.
To further support farmers, the Price Deficit Payment Scheme (PDPS) coverage for notified oilseeds has been increased from 25% to 40% of state production, with an extended implementation period of four months. The scheme will compensate farmers for the difference between MSP and the market price, with the central government covering up to 15% of MSP.
Additionally, the Market Intervention Scheme (MIS) has been extended and modified to better support farmers of perishable horticultural crops.
The coverage has been increased from 20% to 25% of production, and a new option allows for direct differential payments to farmers’ accounts instead of physical procurement. For Tomato, Onion, and Potato (TOP) crops, the government will cover transportation and storage costs to ensure fair prices for farmers and stabilize consumer prices.