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Union Cabinet Approves Continuation of PM-AASHA for Farmers

  • 20 Sep 2024

On 18th September 2024, the Union Cabinet approved the continuation of the Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) to ensure fair pricing for farmers and stabilize essential commodity prices for consumers, with a financial outlay of Rs 35,000 crore through 2025-26.

Key Points

  • Key Changes in PM-AASHA: The government has integrated the Price Support Scheme (PSS) and Price Stabilisation Fund (PSF) under PM-AASHA to enhance effectiveness in serving both farmers and consumers.
  • New Components of PM-AASHA: The revamped scheme now includes the Price Support Scheme (PSS), Price Stabilisation Fund (PSF), Price Deficit Payment Scheme (PDPS), Market Intervention Scheme (MIS), and reforms in procurement policies.
  • Minimum Support Price (MSP) for Crops: Starting in the 2024-25 season, the government will procure pulses, oilseeds, and copra at MSP, covering 25% of national production, with 100% procurement for Tur, Urad, and Masur.
  • Increased Financial Guarantee: The government has raised its financial guarantee to Rs 45,000 crore, enabling the Department of Agriculture and Farmers Welfare to procure crops through platforms like eSamridhi and eSamyukti when market prices dip below MSP.
  • Price Stabilisation Fund (PSF) Role: The PSF will maintain a strategic buffer stock of pulses and onions to protect consumers from price spikes, with the Department of Consumer Affairs procuring these commodities from pre-registered farmers.
  • Support for Essential Commodities: The PSF also extends its interventions to crops like tomatoes and supports subsidized retail sales of products such as Bharat Dal, Bharat Atta, and Bharat Rice.
  • Enhancements to Price Deficit Payment Scheme (PDPS): The government has increased state coverage under PDPS from 25% to 40% of production and extended its implementation period to four months, covering up to 15% of the MSP difference.
  • Market Intervention Scheme (MIS) Updates: The MIS will now cover 25% of horticultural crop production, allowing for direct differential payments to farmers and covering transportation and storage costs for tomatoes, onions, and potatoes.
  • Impact on Farmers and Consumers: These measures aim to discourage hoarding, reduce speculative trading, and ensure essential commodities remain affordable while providing farmers with fair compensation for their produce.