Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)

PM AASHA

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Context:

The Union Cabinet chaired approved the continuation of schemes of Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) to provide remunerative prices to farmers and to control price volatility of essential commodities for consumers.

PM-AASHA

*About*	●Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) is an umbrella scheme to ensure remunerative prices to the farmers for their agricultural produce. ●Giving a major boost to the pro-farmer initiatives of the Government it was announced in the Union Budget for 2018.
*Financial outlay*	●The total financial outgo for the schemes will be Rs. 35,000 crore during the 15th Finance Commission Cycle up to 2025-26.
*Objectives*	●Provide remunerative prices to farmers. ●Control price volatility of essential commodities. ●Ensure availability of essential items at affordable prices for consumers.
*Components*	Price Support Scheme (PSS) Price Stabilization Fund (PSF) Price Deficiency Payment Scheme (PDPS) Price Support Scheme (PSS) ●Physical procurement of pulses, oilseeds, and copra will be conducted by Central Nodal Agencies with support from state governments. ●The Food Corporation of India (FCI) will participate in PSS operations alongside NAFED. ●The central government will cover procurement expenses and any incurred losses. Price Deficiency Payment Scheme (PDPS) ●The Price Deficiency Payment Scheme will include all oilseeds with a notified Minimum Support Price (MSP). ●Pre-registered farmers will receive direct payments for the difference between MSP and market selling prices. ●Payments will be transferred directly to farmers’ registered bank accounts. Private Procurement & Stockist Scheme (PPSS) ●A pilot scheme will test the role of private entities in procurement operations. ●States can roll out the scheme in specific districts or APMCs for oilseeds. ●Selected private agencies will procure crops at MSP when market prices are below MSP.
*Procurement strategy*	●From the 2024-25 season, the procurement of notified pulses, oilseeds, and copra at Minimum Support Price (MSP) will be based on 25% of the national production, ensuring better prices and preventing distress sales. ●For Tur, Urad, and Masur in the 2024-25 season, there will be 100% procurement to support farmers. ●The Department of Consumer Affairs (DoCA) will procure pulses at market prices to ensure availability when prices exceed MSP. ●The government has increased its procurement guarantee to Rs. 45,000 crore for purchasing notified crops at MSP, enhancing procurement capabilities. ●Procurement will also involve farmers registered on the eSamridhi portal of NAFED and eSamyukti portal of NCCF when market prices fall below MSP.
*Enhanced PDS coverage*	●The coverage for the Price Deficit Payment Scheme has increased from 25% to 40% of state oilseed production, with an extended implementation period from 3 to 4 months.
*Compensation*	●The central government will compensate for the difference between MSP and sale/modal prices, limited to 15% of MSP.

Important articles for reference:

Price support schemes

Minimum support price

Sources:

https://pib.gov.in/PressReleasePage.aspx?PRID=2055990

https://www.thehindu.com/news/national/cabinet-approves-continuation-of-pm-aasha-to-provide-better-prices-to-farmers/article68655592.ece

https://www.pmindia.gov.in/en/news_updates/cabinet-approves-continuation-of-schemes-of-pradhan-mantri-annadata-aay-sanrakshan-abhiyan-pm-aasha/?comment=disable

PRACTICE QUESTION

Q.Consider the following statements regarding the “Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)”:

It is an umbrella scheme, announced in the Union Budget for 2018, to ensure remunerative prices to the farmers for their agricultural produce
Under Price Support Scheme (PSS) physical procurement of pulses, oilseeds, and copra will be conducted by state governments.
Price Deficiency Payment Scheme (PDPS) is a pilot scheme that will test the role of private entities in procurement operations.

How many of the above statements is/are correct?

A.Only one

B.Only two

C. All Three

D.None

Answer: A

Explanation:

Statement 1 is correct:

●Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) is an umbrella scheme to ensure remunerative prices to the farmers for their agricultural produce.

●Giving a major boost to the pro-farmer initiatives of the Government it was announced in the Union Budget for 2018.

Statement 2 is incorrect:

Price Support Scheme (PSS)

●Physical procurement of pulses, oilseeds, and copra will be conducted by Central Nodal Agencies with support from state governments.

●The Food Corporation of India (FCI) will participate in PSS operations alongside NAFED.

●The central government will cover procurement expenses and any incurred losses.

Price Deficiency Payment Scheme (PDPS)

●The Price Deficiency Payment Scheme will include all oilseeds with a notified Minimum Support Price (MSP).

●Pre-registered farmers will receive direct payments for the difference between MSP and market selling prices.

●Payments will be transferred directly to farmers’ registered bank accounts.

Statement 3 is incorrect:

Private Procurement & Stockist Scheme (PPSS)

●A pilot scheme will test the role of private entities in procurement operations.

●States can roll out the scheme in specific districts or APMCs for oilseeds.

●Selected private agencies will procure crops at MSP when market prices are below MSP.

●The coverage for the Price Deficit Payment Scheme has increased from 25% to 40% of state oilseed production, with an extended implementation period from 3 to 4 months.