The Union Cabinet has approved the continuation of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) with a financial outlay of ₹35,000 crore. This scheme aims to provide better prices for farmers and manage price fluctuations for essential commodities, benefiting both producers and consumers.
Under the PM-AASHA scheme, the Price Support Scheme (PSS) and the Price Stabilization Fund (PSF) will be integrated to enhance efficiency. This integration will help ensure that farmers receive fair prices for their produce and that essential goods remain affordable for consumers.
The renewed scheme will include components such as the PSS, PSF, Price Deficit Payment Scheme (PDPS), and Market Intervention Scheme (MIS). Specifically, the PSS will allow for the procurement of certain crops—pulses, oilseeds, and copra—at the minimum support price (MSP) up to 25% of national production starting from the 2024-25 season. However, a 100% procurement will be applied for tur, urad, and masur for the same period.
The government has also increased its procurement guarantee to ₹45,000 crore to support the purchase of these crops when market prices drop below MSP. This move is expected to help stabilize the market and encourage farmers to grow more of these crops, reducing the country's reliance on imports.
Additionally, the extension of the PSF scheme will help manage price volatility by maintaining a strategic reserve of pulses and onions, discouraging hoarding, and addressing market imbalances.
For the Price Deficit Payment Scheme, the coverage has been increased from 25% to 40% of state oilseed production, with an extended implementation period of four months to benefit farmers. The central government will cover up to 15% of the difference between MSP and sale prices.
The MIS has been expanded to cover 25% of perishable horticulture crops, with a new option for differential payments directly into farmers' accounts, streamlining support.
To further aid in price stability, the government will cover transportation and storage costs for Tomato, Onion, and Potato (TOP) crops, bridging the gap between producing and consuming states during peak harvest times.
Cabinet Approves Rs 79,156 Cr Pradhan Mantri Janjatiya Unnat Gram Abhiyan for Tribal Upliftment