Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)

Why in the news?

The Union Cabinet has recently extended the PM-AASHA price support scheme for agriculture until the 2025-26 fiscal year.

The PM-AASHA Scheme is designed to ensure fair prices for farmers and their produce, enhancing the procurement process to significantly boost farmers’ income.

Key Components of PM-AASHA

1. Price Support Scheme (PSS)

1. • Central agencies will buy pulses, oilseeds, and copra with state government involvement.
   • Implemented by the Food Corporation of India (FCI) and the National Agricultural Cooperative Marketing Federation of India (NAFED).
   • The central government will cover procurement costs and losses.
   • The government will purchase 25% of the marketable surplus of eligible crops.
   • A bank guarantee of approximately Rs 16,000 crores is allocated for procurement.

2. Price Deficiency Payment Scheme (PDPS)

1. • The state will provide payments to cover the difference between market prices and Minimum Support Prices (MSP).
   • Covers all oilseeds.
   • Modeled after the Bhawantar Bhugtan Yojana and Bhavantar Bharpai Yojana from Madhya Pradesh and Haryana respectively.
   • No physical procurement of crops occurs under this scheme.

3. Pilot of Private Procurement & Stockist Scheme (PPPS)

1. • Implemented in select districts as an alternative to PSS and PDPS.
   • Private agencies will procure oilseeds with government coordination.
   • Private entities will purchase commodities at MSP during market price dips, authorized by the state/UT government.

Other Pro-Farmer Initiatives

• The government aims to double farmers’ income by 2022 through increased productivity, lower cultivation costs, and better post-harvest management.
• Initiatives include Gramin Agricultural Markets (GrAMs), the National Agriculture Market (eNAM), and a supportive export policy.
• Additional programs such as Pradhan Mantri Fasal Bima Yojana, Pradhan Mantri Krishi Sinchai Yojana, and Soil Health Cards have been launched.
• MSP is now set at 1.5 times the cost of cultivation.

Issues and Challenges

1. Procurement Infrastructure: Inadequate infrastructure was highlighted in a 2016 NITI Aayog report, and recent PM-AASHA initiatives have not addressed these deficiencies.
2. Distribution System: NAFED’s large stock of pulses and oilseeds is hindered by inefficient distribution policies.
3. Price Manipulation: Concerns exist about price manipulation by traders, particularly in rural areas.
4. Private Procurement: Issues with private companies procuring wheat and paddy have included delayed expense reimbursements.
5. Funding: NAFED has faced financial difficulties due to depressed market prices, impacting the scheme’s success.

Other Government Initiatives Supporting Farmers

The Government is dedicated to achieving the goal of doubling farmers’ incomes by 2022 by focusing on increasing productivity, lowering cultivation costs, and enhancing post-harvest management, including market structure improvements.

Efforts are underway to develop a new market architecture to ensure farmers receive fair prices for their produce. This includes establishing Gramin Agricultural Markets (GrAMs) to facilitate retail markets near farm gates, promoting competitive and transparent wholesale trade through the Agricultural Produce Market Committee (APMC) and the National Agriculture Market (eNAM), and implementing a strong, pro-farmer export policy.

Additional pro-farmer initiatives include the Pradhan Mantri Fasal Bima Yojana, Pradhan Mantri Krishi Sinchai Yojana, Paramparagat Krishi Vikas Yojana, and the distribution of Soil Health Cards. The commitment to farmer welfare is further demonstrated by setting the minimum support price at 1.5 times the cost of cultivation.

Food Corporation of India (FCI)

The Food Corporation of India (FCI) was established under the Food Corporation’s Act of 1964 with the following objectives:

• To effectively support prices and safeguard farmers’ interests.
• To distribute food grains across the country through the public distribution system.
• To maintain adequate operational and buffer stocks of food grains to ensure national food security.

National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED)

NAFED, registered under the Multi-State Co-operative Societies Act, was founded in 1958 with the aim of promoting cooperative marketing of agricultural produce for the benefit of farmers. Agricultural farmers are the primary members of NAFED, who have a say in its operations through their representation in the General Body.

Way Forward

1. Efficient Implementation: Ensure smooth registration of farmers and effective scheme execution.
2. Focus on Small Farmers: Target small and marginal farmers to improve their economic status.
3. Combat Price Manipulation: Address trader influence and enhance competition by linking mandis.
4. Improve Infrastructure: Strengthen procurement infrastructure.
5. Income Support: Provide measures to alleviate farm distress.

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