PM-AASHA scheme has been extended for the year 2025-26. Is this beneficial?

It is a comprehensive programme that ensures that farmers get reasonable prices through efficient procurement and price support mechanisms.

It is administered by the Ministry of Farmers' Welfare & Agriculture.

Implementing Agency the State governments & Central Nodal Agencies (NAFED, NCCF) undertake implementation.

Components

• Price Support Scheme (PSS) to cover 25% of the country’s production by purchasing pulses, oilseeds and copra at MSP through NAFED & NCCF (exception 100% for Tur, Urad and Masur in 2024–25).

• To stabilise prices, check hoarding and ensure that consumers can afford to buy them, the Price Stabilisation Fund (PSF) maintains buffer stock of onions and pulses.

• Price Deficit Payment Scheme (PDPS): farmers directly remunerated for the difference between market price and MSP; coverage extended for four months to 40% of oilseed production.

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Key Features of PM-AASHA Scheme The scheme has many key features to ensure fair prices and income security to farmers. Some of the key features are given below:

1. Three-Pronged Approach for Price Protection

PM-AASHA has three components to ensure that farmers get Minimum Support Price (MSP) for their produce:

Price Support Scheme (PSS)

• Central agencies like NAFED, FCI and CCI buy oilseeds, pulses and copra at MSP.
• The Government bears procurement and storage costs.
• Implemented in coordination with state governments.

Price Deficiency Payment Scheme (PDPS)

• Farmers are paid direct for the difference between MSP and the actual market price.
• Currently applicable to oilseeds.
• No physical procurement is required, reducing storage burdens.

Private Procurement & Stockist Scheme (PPSS)

• Allows private entities to procure oilseeds at MSP.
• Implemented in select states where state governments choose to do so

2. Focus on Non-Cereal Crops

Expands procurement beyond rice and wheat to include oilseeds, pulses and copra, thus encouraging crop diversification

3. Farmer-Centric Benefits

Ensures price security for farmers, reducing distress sales.

Increases farmer participation in the MSP system, in particular for pulses and oilseeds

Helps in achieving the goal of doubling farmers' income.

4. Funding and Financial Support

The scheme is fully funded by the Central Government.

Covers procurement losses, administrative expenses, and interest costs for agencies.

5. Promotion of Private Sector Involvement

PPSS will facilitate private players to procure oilseeds so as to reduce the burden on government agencies.

This scheme is a key instrument for protecting farmers’ incomes and stabilising agricultural markets.