Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA): Scheme to ensure minimum support price for farmers

The Government of India cabinet has approved Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) scheme for farmers to provide assured Minimum Support Price (MSP). It is a umbrella scheme to make sure that the farmers get remunerative prices for their crops. The PM-AASHA scheme is expected to provide minimum 50% profit over the production cost to the farmers. The 50% increased returns on the production cost was the government`s promise and the same was announced by the Finance Minister Shree Arun Jeitely during the General Budget 2018-19.

What is Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)? A government of India initiative to make sure that the farmers get Minimum Support Prices for their crops which is 50% more than the production cost.

The Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) is the combination of three schemes/components:

  1. Price Support Scheme (PSS)
  2. Price Deficiency Payment Scheme (PDPS)
  3. Private Procurement & Stockist Scheme (PPPS)

Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) Objectives:

  • To make sure that the farmers gets steady income
  • To make sure that the farmers get MSP for their crops
  • To improve farmers living standards across the country
  • To reduce/stop farmers suicides

Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) Benefits:

  • Increased income for farmers
  • With Price Support Scheme, procurement of oil seeds and pluses will be done by the government
  • Under Price Deficiency Payment Scheme, government will pay difference between the selling price and MSP
  • Private Procurement Stockist Scheme (PPSS) will allow private companies in the procurement crops at the MSP

Price Support Scheme (PSS):

  • Under the scheme central government nodal agencies will physically procure pulses, oilseeds and copra
  • Along with NAFED Food Corporation of India (FCI) will procure crops in states and districts
  • The cost of procurement and losses if any will be borne by the government of India

Price Deficiency Payment Scheme (PDPS):

  • The scheme based on the Madhya Pradesh Government`s popular scheme Bhavantar Bhugtan Yojana (BBY)
  • Under the scheme government pays the difference between the MSP and actual selling price of the crop if prices of the crops drops below MSP
  • The difference amount is directly transfered to the farmers registered bank account
  • Oil seeds for which MSPs are announced are covered under the PDPS scheme

Private Procurement & Stockist Scheme (PPPS):

  • Scheme to involve pilot stockist to procure when the prices of the crops falls below the MSP levels
  • This will be pilot scheme and based on the success of the scheme it will be rolled out full-fledged
  • The scheme is applicable only to the oil seeds and can be launched only in selected districts  or Agricultural Produce Market Committees (APMCs)
  • The scheme is left to the state government for implementation
  • The private players will be allowed to procure crops at the MSP under the scheme

Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA): Highlights & Implementation

  • A umbrella scheme to make sure the farmers get 50% more income on the production cost of the crops
  • A budget of Rs. 15,053 crores is allocated for the implementation of the scheme
  • It is a combination of three schemes: Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Pilot of Private Procurement & Stockist Scheme (PPPS)
  • Center government will also be launching Market Intervention Scheme for those crops which are perishable and are not covered under MSP policy
  • 23 Kharip and Rabbi crops are covered and notified under MSP
  • The Food Corporation of India (FCI) procures wheat and rice at present and distributes it via ration shops and welfare schemes
  • Existing schemes of the Department of Food and Public Distribution provide MSP for paddy, wheat and nutri-cereals/coarse grains
  • Ministry of Textile provide MSP for cotton and jute
  • The schemes primary objective is to provide 1.5 times returns on the cost of production to the farmers across India
  • Union Ministers Radha Mohan Singh, Dharmendra Pradhan, and Piyush Goyal announced the scheme
  • The scheme will be implemented in next 2 years and Rs. 6,250 crore will be spent this year
  • Guarantee of Rs 16,550 crore has been given by the government to procurement agencies
  • Total of Rs 45,550 crore will be spent on the scheme


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