Extension of PM-AASHA Scheme Until 2025-26

Syllabus: GS3/ Agriculture

Context

• The Union Government has approved the continuation of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) Scheme during the 15th Finance Commission Cycle up to 2025-26.

PM-AASHA Scheme

• The scheme was launched in 2018 as an umbrella scheme to ensure Minimum Support Price (MSP) to farmers, particularly for pulses, oilseeds, and copra.
• It aims to ensure remunerative prices for farmers and price stability in the agricultural sector.

Components of PM-AASHA

• Price Support Scheme (PSS): The government procures pulses, oilseeds, and copra at MSP.
  • The Central Nodal Agencies (CNAs) conduct procurement in collaboration with state agencies.
  • Only produce meeting Fair Average Quality (FAQ) standards is procured.
• Price Deficiency Payment Scheme (PDPS): It directs compensation payments to pre-registered farmers for the difference between MSP and the market price.
  • There is no physical procurement of produce.
  • It applies to oilseeds and requires transactions through a transparent auction process in notified market yards.
• Private Procurement & Stockist Scheme (PPSS) (Pilot Basis): It allows states to involve private stockists for oilseed procurement.
  • It is implemented in selected Agricultural Produce Market Committees (APMCs) or districts.

Key Changes in the Scheme

• In 2024 the Government converged the Price Support Scheme (PSS) & Price Stabilization Fund (PSF) schemes in PM AASHA to serve the farmers and consumers more efficiently.
  • It will help in protecting consumers from extreme volatility in prices of agri-horticultural commodities by maintaining strategic buffer stock of pulses and onion for calibrated release; to discourage hoarding, unscrupulous speculation; and for supplies to consumers at affordable prices.
• The Market Intervention Scheme (MIS) was made a component of the integrated scheme of PM-AASHA.
  • The scheme is for perishable agricultural and horticultural commodities like onions, potatoes, and tomatoes. 
  • It is implemented when prices fall by at least 10% from the previous normal season.

Significance of the Scheme

• Ensures price support to farmers, reducing distress sales.
• Enhances procurement efficiency through market-based interventions.
• Increases farmer participation in transparent marketing systems.
• Prevents extreme price fluctuations, protecting both producers and consumers.

Concerns

• Limited implementation: PDPS and PPSS have seen low adoption by states.
• Procurement constraints: MSP coverage is not uniform across all crops and regions.
• Awareness and accessibility issues: Many farmers lack awareness or face bureaucratic hurdles in registration.
• Budgetary concerns: Ensuring adequate funding for procurement operations remains a challenge.

Concluding remarks

• The extension of PM-AASHA till 2025-26 reaffirms the government’s commitment to farmers’ income security and agriculture market reforms. 
• Strengthening its implementation and addressing challenges can enhance its impact in ensuring remunerative prices for farmers.

Source: AIR