The Union Cabinet, led by Prime Minister Narendra Modi, has approved the continuation of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) to ensure fair prices for farmers while managing the price volatility of essential commodities for consumers. This initiative will entail a financial outlay of ₹35,000 crore during the 15th Finance Commission Cycle, lasting until 2025-26.
To enhance efficiency, the government has integrated the Price Support Scheme (PSS) and the Price Stabilization Fund (PSF) into PM-AASHA. This comprehensive scheme aims to provide farmers with fair prices for their produce while stabilizing the prices of essential commodities, ensuring they remain affordable for consumers. The revamped PM-AASHA will include components such as the PSS, PSF, Price Deficit Payment Scheme (PDPS), and the Market Intervention Scheme (MIS).
Starting from the 2024-25 season, the procurement of specified pulses, oilseeds, and copra at minimum support prices (MSP) will be limited to 25% of the national production of these crops. This measure is designed to empower states to procure more from farmers, thereby preventing distress sales. However, this ceiling will not apply to Tur, Urad, and Masur for the 2024-25 season, as a complete procurement of these crops is already planned.
#WATCH | Union Minister Ashwini Vaishnaw says the Union Cabinet has approved Rs 35,000 crore for PM Annadata Ay Sanrakshan Abhiyan – PM-AASHA. pic.twitter.com/MnkkXkC0Fx
— ANI (@ANI) September 18, 2024
The government has also increased its guarantee for the procurement of notified pulses, oilseeds, and copra to ₹45,000 crore. This adjustment will facilitate greater procurement through the Department of Agriculture and Farmers Welfare (DA&FW), especially for pre-registered farmers on the eSamridhi portal of the National Agricultural Cooperative Marketing Federation of India (NAFED) and the eSamyukti portal of the National Cooperative Consumers’ Federation of India (NCCF). This initiative aims to motivate farmers to cultivate more of these crops, fostering self-sufficiency and reducing reliance on imports.
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The extension of the Price Stabilization Fund will help protect consumers from extreme price fluctuations in agricultural commodities. By maintaining a strategic buffer stock of pulses and onions, the government aims to prevent hoarding and ensure supplies at affordable prices. Procurement at market prices will also be facilitated for farmers registered on relevant portals when prices exceed the MSP.
To promote the implementation of the Price Deficit Payment Scheme for notified oilseeds, the coverage has been increased from 25% to 40% of state production. Additionally, the implementation period has been extended from three to four months, with the Central Government covering up to 15% of the MSP difference.
Moreover, the Market Intervention Scheme will now provide better prices for farmers of perishable horticultural crops, increasing coverage from 20% to 25% of production. A new option will allow for direct differential payments to farmers instead of physical procurement. To address price disparities in Tomato, Onion, and Potato crops during peak harvest, the government will also cover transportation and storage costs incurred by central agencies like NAFED and NCCF, benefiting both farmers and consumers.
Source: PIB
