Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)

Launched recently by the centre. To ensure better prices for farm produce. Related to paddy, wheat and other cereals and coarse grains where procurement is at MSP now.

  • PSS- Physical procurement of pulses, oilseeds and copra will be done by Central Nodal Agencies.
  • NAFED and Food Cooperation of India will also take up procurement of crops under the Price Support Scheme.
  • The Centre will bear the expenditure and losses due to procurement.
  • PDPS- The centre proposes to cover all seeds.
  • MSP and actual selling⟋modal price difference will be directly paid into the farmer՚s bank account.
  • PPSS-States can roll out PPSSs in their selected districts.
  • A private player can procure crops at MSP.
  • Private Player compensation- A service charge up to a maximum of 15% of the MSP.

Three Schemes under AASHA

  • The Price Support Scheme (PSS) .
  • The Price Deficiency Payment Scheme (PDPS) .
  • The Pilot of Private Procurement and Stockist Scheme (PPPS) .

Possible Benefits

  • Problem of non-remunerative prices- AASHA points to an innovative, MSP-plus approach.
  • Components have been expected to cover the gaps in the procurement and compensation mechanism for crops.
  • Revival of the rural economy by assuring better income to farmers.
  • Reduces the stress on soil and water through ensured crop diversification.
  • Savings for the Centre.
  • No need- Going through the hassle of physical procurement, storage and disposal.

Challenges and Possible Ways Out

  • Depressed Prices at Mandis.
  • Farmers are being forced to sell the farm produce at lower prices.
  • Small and Marginal farmers are unable to sell their produce under the Bhavantar scheme.
  • Double burden of lowered price.
  • No compensation.
  • Providing funds would be a key challenge.
  • Financially Burdensome for state governments.
  • Delayed payments from the centre.
  • Trade lobbies at mandis needs to be broken.
  • Widening the competition by inter-linking mandis.
  • States need to be proactive in undertaking regulatory reforms.

Examrace Team at Aug 21, 2021