Components of Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM AASHA)

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The Pradhan Mantri Annadata Aay Sanrakshan Abhiyan or PM AASHA is an umbrella term that is used for many different schemes for farmers. The aim of this scheme is to ensure farmers receive remuneration for their crops. On top of that, the Government of India had introduced this scheme due to the farmer unrest in the country because many critical agricultural commodities fell below their Minimum Support Price.

This bundle of schemes gives a much-needed boost to the pro-farmer initiatives of the Government and keeping in view the commitment and dedication for protecting the farmers of India, the Union Cabinet approved the umbrella scheme Pradhan Mantri Annadata Aay Sanrakshan Abhiyan.

Background

The PM AASHA scheme aims at ensuring that farmers get to enjoy the full benefit of the announced MSP. For the same reason, it is vital that if the price of the agricultural produce market falls below MSP, the state government in question and the central government should either purchase the crops at MSP or formulate an alternative way to provide MSP for the farmers through a different approach.

Components of PM AASHA

The Pradhan Mantri Annadata Aay Sanrakshan Abhiyan scheme includes the mechanism of making sure the farmers get their remuneration prices and its components are:

  • Price Deficiency Payment Scheme (PDPS)

Under the Price Deficiency Payment Scheme, it was proposed to protect all oilseeds for which MSP is notified. In this direct payment, the difference between the MSP and the selling/model price will be made to those farmers who have pre-registered and are selling their produce in the notified marketplace through a transparent auction process.

  • Price Support Scheme (PSS)

In the Price Support Scheme, the physical procurement of pulses, oilseeds and Copra will be done by Central Nodal Agencies with the proactive role of State government. Moreover, it was also decided that in addition to NAFED, the Food Corporation of India (FCI) will up the PSS operations in respective states and districts. The losses and cost of procurement will be borne by the Central government according to the norms.

  • Pilot of Private Procurement & Stockist Scheme (PPPS)

It was also decided that the participation of the private sector in procurement operation needs to be piloted so that on the basis of learnings, the ambit of private participation, may be increased in terms of procurement.

Along with PDPS, it was also decided that for oilseeds, states have the option to roll out PPSS or Private Procurement Stockist Scheme on a pilot basis in predetermined districts/APMC(s) of district involving the participation of private stockists. One or more crops of oilseeds for which MSP is notified will only be covered by the pilot districts/APMC(s).

Expenditure

It was decided to give an additional government guarantee of Rs 16,550 crore making it Rs 45,550 crore in total. Moreover, the budget provision for procurement operations has also been lifted and Rs 15,053 crore has been sanctioned for PM-AASHA implementation.

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