Agriculture is the backbone of India’s economy, supporting millions of livelihoods. However, challenges like market volatility and unpredictable prices often hinder farmers from achieving financial stability. To address these issues, the Indian government launched the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) in 2018, a transformative initiative designed to ensure fair prices for farmers and strengthen agricultural incomes. With its farmer-centric approach, PM-AASHA aims to create a more resilient and prosperous agricultural sector.
What is PM-AASHA?
PM-AASHA, or the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan, is a flagship scheme by the Ministry of Agriculture and Farmers Welfare. It focuses on safeguarding farmers' incomes by guaranteeing the Minimum Support Price (MSP) for 24 key crops, including cereals, millets, oilseeds, and pulses. Under this scheme, MSP is set at 1.5 times the cost of production (CoP), ensuring remunerative prices for farmers’ produce.
The initiative encourages farmers to invest confidently in their fields, knowing that their efforts will yield fair returns. By addressing price disparities and offering robust support systems, PM-AASHA seeks to eliminate distress sales and promote sustainable agricultural practices.
Key Components of PM-AASHA
PM-AASHA operates through three distinct components, each designed to address specific challenges in the agricultural sector:
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Price Support Scheme (PSS)
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Price Deficiency Payment Scheme (PDPS)
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Market Intervention Scheme (MIS)
Let’s delve into each component and its role in supporting farmers
Price Support Scheme (PSS)
The Price Support Scheme ensures government intervention when market conditions fail to offer fair prices. Implemented upon requests from state governments or union territories, this scheme exempts mandi taxes, simplifying the procurement process.
For the 2024-25 season, the procurement ceiling has been raised to 25% of national production, with a special focus on pulses like Tur, Urad, and Masoor. This adjustment promotes self-reliance and safeguards small and marginal farmers from distress sales during periods of surplus production.
Price Deficiency Payment Scheme (PDPS)
PDPS caters specifically to oilseed farmers, compensating them for the difference between the MSP and actual market prices. Under this scheme, farmers can sell up to 40% of their produce at designated market yards and receive direct payments to offset price disparities.
By eliminating intermediaries and ensuring transparency, PDPS empowers farmers to earn fair returns for their hard work, mitigating the impact of market fluctuations.
Market Intervention Scheme (MIS)
Addressing the unique challenges of perishable crops like tomatoes, onions, and potatoes (TOP crops), the Market Intervention Scheme steps in when prices drop significantly. Upon state requests, the government provides financial support for storage and transportation, ensuring price stability and minimizing losses.
Through partnerships with agencies like NAFED, MIS bridges the gap between production zones and consumption markets, benefiting both farmers and consumers.
Tangible Outcomes of PM-AASHA
The impact of PM-AASHA can be seen in its remarkable achievements:
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During the Rabi 2023-24 season, the government procured 6.41 lakh metric tons (LMT) of pulses worth Rs 4,820 crore, benefiting 2.75 lakh farmers.
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For oilseeds, 12.19 LMT valued at Rs 6,900 crore were purchased from over 5.29 lakh farmers.
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The procurement of 5.62 LMT of soybeans during the current Kharif season marked a historic high, directly aiding 2.42 lakh farmers.
Since its inception, approximately 195.39 LMT of pulses, oilseeds, and copra have been procured under PM-AASHA, amounting to Rs 1.07 lakh crore and uplifting nearly one crore farmers, particularly small and marginal ones.
Tackling Price Volatility and Promoting Sustainability
Beyond financial support, PM-AASHA plays a crucial role in addressing price volatility and reducing post-harvest losses. By stabilizing market prices, it protects farmers from exploitation by intermediaries who often dominate the agricultural value chain.
Additionally, the scheme encourages crop diversification, particularly towards pulses and oilseeds, fostering sustainable farming practices and aligning with India’s self-sufficiency goals in essential commodities.
PM-AASHA is more than just a financial safety net; it is a transformative step toward making Indian agriculture profitable and resilient. By reducing distress sales, ensuring timely payments, and boosting rural economic growth, the scheme empowers farmers to contribute significantly to the national economy.
