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Economy and Finance

Economy and Finance

Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)

30 Dec 2023 Zinkpot 273
  1. Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) is a scheme launched by the Government of India to provide support and remunerative prices to farmers for their produce. 
  2. The scheme was introduced to address the challenges faced by farmers in getting fair prices for their crops and to ensure their economic well-being. 
  3. Three Sub-Schemes: PM-AASHA comprises three sub-schemes aimed at supporting different categories of crops and farmers:
    1. Price Support Scheme (PSS): Under PSS, physical procurement of pulses, oilseeds, and copra is done by Central Nodal Agencies. The procurement is carried out at Minimum Support Price (MSP) to provide price support to farmers.
    2. Price Deficiency Payment Scheme (PDPS): PDPS is an income support mechanism where the government directly pays the difference between the MSP and the selling/modal price of the crop to the farmers. This is applicable for oilseeds and pulses.
    3. Pilot of Private Procurement & Stockist Scheme (PPPS): PPPS allows the participation of private agencies for the procurement of oilseeds and pulses at MSP.
  4. Minimum Support Price (MSP): MSP is the minimum price set by the government to ensure that farmers get a reasonable return for their produce. The government announces MSP for various crops before the sowing season.
  5. Benefits for Farmers: It is designed to provide various advantages to farmers in India. Here are some key benefits and advantages of the PM-AASHA scheme:
    • Price Support: PM-AASHA aims to provide price support to farmers by ensuring that they receive a Minimum Support Price (MSP) for their crops. This helps protect farmers from market fluctuations and ensures a minimum income for their produce.
    • Income Security: The scheme contributes to income security for farmers by addressing the challenges of distress sales and price volatility. By providing support through mechanisms like Price Support Scheme (PSS) and Price Deficiency Payment Scheme (PDPS), farmers are better positioned to manage their finances.
    • Reduced Market Risks: Through physical procurement under PSS and deficiency payments under PDPS, PM-AASHA helps in mitigating market risks for farmers. It reduces the likelihood of farmers having to sell their produce at lower prices during periods of market glut.
    • Private Sector Participation: The Pilot of Private Procurement & Stockist Scheme (PPPS) allows private sector entities to participate in the procurement process. This can potentially introduce efficiency, competition, and market-driven practices in the agricultural supply chain.
    • Diversification of Procurement Channels: By allowing private players to participate in procurement, PM-AASHA diversifies the channels through which farmers can sell their produce. This can enhance competition and lead to better prices for farmers.
    • Enhanced Market Access: The scheme provides farmers with enhanced market access through the involvement of both government agencies and private players in the procurement process. This can potentially lead to improved market linkages for farmers.
    • Stabilization of Agricultural Prices: PM-AASHA contributes to the stabilization of agricultural prices by preventing sharp declines due to market pressures. This stability is beneficial for farmers who may otherwise face income uncertainties.
    • Support for Specific Crops: The scheme focuses on specific crops like pulses, oilseeds, and copra. This targeted approach aims to address the specific challenges faced by farmers cultivating these commodities.
    • Encouragement for Crop Diversification: By providing support for a variety of crops, PM-AASHA encourages farmers to diversify their crop choices, promoting agricultural diversity and reducing dependency on a limited set of crops.
    • Government Commitment to Agriculture: PM-AASHA reflects the government's commitment to the welfare of farmers and the agricultural sector. It demonstrates an effort to create a supportive ecosystem that enables farmers to sustain their livelihoods.
  6. The PM-AASHA scheme aims to enhance agricultural productivity, reduce the cost of cultivation, and enable boosting and securing farmers' income in the long run. The scheme is a significant initiative to support farmers and promote agricultural growth in India.
     

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