×

Pradhan Mantri Annadata Aay Sanrakshan Abhiyan PM-AASHA Scheme

Pradhan Mantri Annadata Aay Sanrakshan Abhiyan PM-AASHA Scheme

Pradhan Mantri Annadata Aay Sanrakshan Abhiyan PM-AASHA Scheme

Giving a major boost to the pro-farmer initiatives of the Government and in keeping with its commitment and dedication for the Annadata, the Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved a new Umbrella Scheme "Pradhan Mantri Annadata Aay SanraksHan Abhiyan" (PM-AASHA).  The Scheme is aimed at ensuring remunerative prices to the farmers for their produce as announced in the Union Budget for 2018. 

Objective

  • Ensuring remunerative prices to farmers for their produce, 

  • Complement the increase in MSP which will be translated to farmer's income by way of robust procurement mechanism in coordination with the states.

Provisions

The new Umbrella Scheme includes the mechanism of ensuring remunerative prices to the farmers and is comprised of

  1. Price Support Scheme (PSS),

  2. Price Deficiency Payment Scheme (PDPS)

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

This scheme applies only for Oilseeds, Pulses and Copra, for Paddy, Wheat, nutri-cereals (coarse grains), cotton and jute the existing scheme will continue with MSP model 

Price Support Scheme (PSS)

    In (PSS), physical procurement of pulses, oilseeds and Copra will be done by Central Nodal Agencies with proactive role of State governments

      NAFED, Food Cooperation of India (FCI) will take up PSS operations in states /districts. 

        The procurement expenditure and losses due to procurement will be borne by Central Government as per norms.

          State governments will be entrusted with the responsibility of deciding the type and quantity of the crop to be procured when wholesale prices fall below MSP. 

            Besides, the State governments will also procure 25 per cent of the marketable surplus of farmers for eligible crops.

              The Centre has made a provision of about Rs 16,000 crores to be provided as bank guarantee for the agencies to procure from farmers.

              Price Deficiency Payment Scheme (PDPS)

              • In this direct payment of the difference between the MSP and the selling/modal price will be made to pre-registered farmers selling his produce in the notified market yard through a transparent auction process.

              • Under PDPS applies to all oilseeds for which MSP is notified.  

              • All payment will be done directly into registered bank account of the farmer

              • This scheme does not involve any physical procurement of crops as farmers are paid the difference between the MSP price and Sale/modal price on disposal in notified market. 

              • The support of central government for PDPS will be given as per norms.

              • This scheme is modelled on the Bhawantar Bhugtan Yojana that has been

              Pilot of Private Procurement & Stockist Scheme (PPPS)

              • In PPSS will be rolled out in certain pilot districts 

              • Private agencies will procure oilseeds in coordination with the government.

              • The selected private agency shall procure the commodity at MSP in the notified markets during the notified period from the registered farmers in consonance with the PPSS Guidelines, whenever the prices in the market fall below the notified MSP and whenever authorized by the state/UT government.

              • The Private stockist would be paid maximum service charges up to 15% of the notified MSP will be payable.

              Outcomes

              • Unless procurement is strengthened by various means, any hike in MSP will not proportionately benefit farmers. 

              • It will insulate the farmers from adverse effects of Bumper crops 

              • It will improve the ease of marketing and price realisation

              • Double farmers’ income by 2022

              • Reduce food subsidy bill of the government

              • Reduce the food wastage in FCI godowns 

                For 3-Dimensional Study, See the video.

              Pradhan Mantri Annadata Aay Sanrakshan Abhiyan PM-AASHA Scheme