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