Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)

Why in News?

The Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) is a government framework aimed at strengthening Minimum Support Price (MSP) implementation and ensuring remunerative prices for farmers, particularly when market prices fall below MSP.

Launched in September 2018, the scheme seeks to prevent distress sales by farmers while also contributing to price stability for consumers.

Four Components of PM-AASHA

PM-AASHA brings together four major price-support mechanisms:

1. Price Support Scheme (PSS): Under the PSS, the government procures pulses, oilseeds and copra from farmers at MSP when market prices fall below the support price. This mechanism provides direct price support through physical procurement.

2. Price Deficiency Payment Scheme (PDPS): Under PDPS, farmers do not need to physically sell their produce to a government agency. Instead, eligible farmers receive the difference between MSP and the actual market price in a notified market, subject to the prescribed limit of up to 15% of the MSP value. The payment is made directly into the farmer’s bank account. The mechanism is mainly used for oilseeds and aims to provide MSP protection without requiring extensive government procurement, transportation and storage.

3. Market Intervention Scheme (MIS): The MIS covers perishable agricultural and horticultural commodities for which MSP is generally not applicable. It can be used for commodities such as tomatoes, onions and potatoes when market prices fall sharply. The intervention can be triggered when prices decline by at least 10% compared with normal previous-season rates.

4. Price Stabilization Fund (PSF): The PSF primarily seeks to protect consumers from sharp fluctuations in prices of essential agricultural commodities. Under this mechanism, commodities such as pulses, onions and potatoes can be procured during the harvest season to create buffer stocks. These stocks can subsequently be released when supplies tighten or prices rise sharply, thereby helping to contain price spikes.

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