PM-AASHA: MSP-Based Price Support (Agriculture)
PM-AASHA: MSP-Based Price Support (Agriculture)
Why In News:
The Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) has received an allocation of ₹7,200 crore for 2026–27, with renewed emphasis on digital and Aadhaar-enabled procurement.
What is PM-AASHA?
PM-AASHA was launched in 2018 as an umbrella framework to ensure that farmers receive remunerative prices, particularly when market prices fall below the Minimum Support Price (MSP).
Unlike an MSP announcement alone, the scheme focuses on creating mechanisms through which farmers can actually realise remunerative prices, thereby reducing the incentive for distress selling.
Components of PM-AASHA
a) Price Support Scheme (PSS)
Under PSS, designated agencies procure pulses, oilseeds and copra directly from farmers at the announced MSP when market prices are weak.
The mechanism provides farmers with a guaranteed procurement channel, enable the government to build strategic stocks where necessary.
b) Price Deficiency Payment Scheme (PDPS)
Under PDPS, farmers receive compensation for the difference between the MSP and the market price capped at 15% of MSP, without requiring the government to physically procure the entire produce.
c) Price Stabilisation Fund (PSF)
PSF supports the creation and management of buffer stocks of selected agricultural commodities to moderate excessive price fluctuations.
It can therefore help protect consumers from sharp price increases while providing greater price stability in agricultural markets.
d) Market Intervention Scheme (MIS)
MIS provides price support for perishable agricultural and horticultural commodities that are not covered under regular MSP procurement.
The scheme activates when prices of perishable crops drop by at least 10% compared to the previous normal season.
It is particularly relevant when a sudden increase in production leads to a sharp fall in market prices and threatens farmers' incomes.
Recent Reforms and Digitalisation
Aadhaar-enabled procurement: Linking farmer registration and biometric authentication with procurement can improve beneficiary identification, reduce leakages and strengthen transparency.
Digital platforms: Integration with platforms such as e-NAM, e-Samriddhi and e-Samyukti can facilitate digital registration, procurement records, payments and market information.
e-NAM, launched in 2016, seeks to integrate agricultural markets through a pan-India electronic trading platform, improving price discovery and market access.
Expanded pulse procurement: Tur, Urad and Masur procurement can cover up to 100% of a State's production in specified circumstances, strengthening the government's push towards greater domestic pulse availability.
Institutional procurement: Procurement is undertaken through designated Central and State agencies, with the framework providing for sharing of certain procurement-related losses between the Centre and States.