The Union Cabinet has approved the extension of the Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) schemes to ensure better prices for farmers and stabilize essential commodity prices for consumers. The initiative will involve a total financial outlay of ₹35,000 crore up to FY 2025-26.
To improve efficiency, the government has merged the Price Support Scheme (PSS) and Price Stabilisation Fund (PSF) schemes under PM-AASHA. The revamped PM-AASHA now includes components of the price support scheme, price stabilisation fund, price deficit payment scheme, and market intervention scheme.
Under the price support scheme, from the 2024-25 season, the government will procure 25% of the national production of notified pulses, oilseeds, and copra at the Minimum Support Price (MSP). This will empower states to procure more of these crops at MSP, ensuring farmers receive fair prices and preventing distress sales. However, for the 2024-25 season, 100% procurement of tur, urad, and masur will be carried out, as previously decided.
The government has also increased its guarantee for the procurement of pulses, oilseeds, and copra at MSP to ₹45,000 crore, which will encourage farmers to cultivate more of these crops. This, in turn, will contribute to India’s self-sufficiency, reducing the need for imports to meet domestic demand.
The extension of the Price Stabilisation Fund (PSF) will safeguard consumers from price volatility in agri-horticultural commodities. Additionally, the Price Deficit Payment Scheme for oilseeds will now cover 40% of a state’s production, up from 25%, with the implementation period extended from three to four months. This will incentivize more states to adopt the scheme, further supporting farmers.
