19-Sep-2024
Goverment Allocated Rs 35,000 Crore for PM-AASHA
Miscellaneous
Why in the News?
The Cabinet approved the continuation of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) with a ₹35,000 crore allocation to procure agricultural commodities at minimum support prices. Additionally, ₹24,475 crore has been allocated to subsidise NPK fertilisers for the rabi season. The financial outlay for PM-AASHA extends through the 15th Finance Commission cycle, up to 2025-26.
Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)
- This scheme is designed to provide assurance of Minimum Support Prices (MSP) to farmers.
- It is part of the Union Government’s commitment in the 2018 Union Budget to pay farmers a fair price for their produce.
- Objectives
- Protect farmers from price fluctuations and ensure they receive remunerative prices for their produce.
- Prevent distress sales by facilitating the procurement of crops when market prices fall below MSP.
- Stabilize the prices of essential commodities to make them affordable for consumers.
- Key Changes
- Price Support Scheme (PSS) and Price Stabilisation Fund (PSF) converged.
- 100% procurement policy applies to Tur, Urad, and Masur.
- Increased financial guarantee to ₹45,000 crore for expanded procurement via platforms like eSamridhi and eSamyukti portals.
- Extends to crops like tomatoes and promotes subsidised retail sales (e.g., Bharat Dal, Atta, Rice).
- Coverage for oilseeds increased from 25% to 40% of state production.
- The Central Government will cover 15% of the difference between MSP and market prices.
- Coverage for perishable horticultural crops increased from 20% to 25%.
- Government to cover transportation and storage costs for Tomato, Onion, and Potato (TOP) crops, ensuring fair prices for farmers and price stability for consumers.