Government Approves ₹35,000 Crore Expansion of PM-AASHA Scheme

The Union Cabinet, led by Prime Minister Narendra Modi, has greenlit the extension of the Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) scheme, aimed at ensuring fair prices for farmers and stabilizing essential commodity prices for consumers. The expanded scheme will see a financial allocation of ₹35,000 crore during the 15th Finance Commission period, running until 2025-26.

Key Updates to PM-AASHA:

To better serve both farmers and consumers, the government has merged the Price Support Scheme (PSS) and the Price Stabilisation Fund (PSF) under the PM-AASHA umbrella. The revamped scheme will now consist of the following key components:

1. Price Support Scheme (PSS)
2. Price Stabilisation Fund (PSF)
3. Price Deficit Payment Scheme (PDPS)
4. Market Intervention Scheme (MIS)

Enhancements in Procurement Policies:

Beginning with the 2024-25 agricultural season, the government will purchase pulses, oilseeds, and copra under the Price Support Scheme (PSS) at Minimum Support Prices (MSP), covering 25% of the national production. States will also have the option to procure more of these crops, ensuring farmers get fair prices and avoiding distress sales. Additionally, a 100% procurement policy will be implemented for Tur, Urad, and Masur in the 2024-25 season.

The government has increased its financial guarantee to ₹45,000 crore to further strengthen procurement efforts. This will allow the Department of Agriculture and Farmers Welfare (DA&FW) to purchase additional pulses, oilseeds, and copra from registered farmers whenever market prices drop below the Minimum Support Price (MSP). This move is expected to boost domestic production and reduce reliance on imports.

Price Stabilisation Fund (PSF):

The Price Stabilisation Fund (PSF) will maintain a strategic stockpile of pulses and onions to shield consumers from sudden price spikes in agricultural commodities. The Department of Consumer Affairs (DoCA) will purchase these commodities when market prices exceed MSP, including sourcing from pre-registered farmers. The initiative aims to curb hoarding, reduce speculative trading, and ensure essential commodities remain affordable.

The PSF will also extend its interventions to crops like tomatoes, and the scheme will support subsidized retail sales of Bharat Dal, Bharat Atta, and Bharat Rice.

Price Deficit Payment Scheme (PDPS):

To encourage states to adopt the PDPS for oilseeds, the government has expanded the scheme’s coverage from 25% to 40% of state production and extended the implementation period from three to four months. Under this scheme, the central government will cover 15% of the difference between the MSP and the sale or modal price, offering vital financial support to farmers.

Market Intervention Scheme (MIS): The Market Intervention Scheme (MIS) has been updated to better assist farmers growing perishable horticultural crops. The coverage has been increased from 20% to 25%, and farmers will now receive direct differential payments, eliminating the need for physical procurement. For key crops like tomatoes, onions, and potatoes (TOP), the government will cover transportation and storage costs, helping balance price disparities between producing and consuming states. This step will ensure farmers receive fair prices for their produce while stabilizing consumer prices.