Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)

Why in News?

The Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) has emerged as a structured mechanism to support farmers through assured procurement, price stabilization, and market interventions.

About PM-AASHA

The PM-AASHA was launched in September 2018 with the objective of strengthening the implementation of the Minimum Support Price (MSP) and ensuring remunerative prices for farmers.

The scheme uses different mechanisms to address situations in which market prices fall below the desired level and to manage price volatility in agricultural commodities.

Components of PM-AASHA

1. Price Support Scheme (PSS)

Under the Price Support Scheme (PSS), crops are procured at MSP when market prices fall below MSP during the harvesting period.

The scheme mainly covers pulses, oilseeds, and copra.

Procurement is carried out through agencies such as the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers' Federation of India Limited (NCCF) at the request of State Governments.

Only registered farmers with valid land records are eligible, which enables direct benefits to farmers without intermediaries.

2. Price Stabilization Fund (PSF)

The Price Stabilization Fund (PSF) aims to protect consumers from price volatility by maintaining buffer stocks of essential commodities such as pulses, onions, and potatoes.

Under this mechanism, commodities are procured during the harvest season and released during lean seasons. This helps control price spikes and maintain affordability for consumers.

3. Price Deficiency Payment Scheme (PDPS)

Under the Price Deficiency Payment Scheme (PDPS), farmers' produce is not physically procured.

Instead, farmers receive the difference between the MSP and the actual market price in the notified market, subject to 15% of the MSP value, directly into their bank accounts.

The scheme is mainly used for oilseeds and reduces the need for large-scale physical procurement infrastructure.

4. Market Intervention Scheme (MIS)

The Market Intervention Scheme (MIS) is designed to procure perishable agricultural and horticultural commodities for which an MSP does not apply.

It covers commodities such as tomatoes, onions, and potatoes.

The scheme is activated when market prices fall by at least 10% compared with the rates prevailing during the previous normal season.

The operations are undertaken through Central Nodal Agencies such as NAFED and NCCF, with cost-sharing between the Centre and State Governments.