PM AASHA from Vajirao & Reddy Institute

PM AASHA

The Union Cabinet has extended the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) price support scheme until 2025-26, with an outlay of ?35,000 crore aimed at providing better prices for farmers and managing price volatility of essential commodities. ABOUT PM AASHA

• Components of PM-AASHA:
  • Price Support Scheme (PSS): Physical procurement of key crops like pulses, oilseeds, and copra by Central Nodal Agencies, with state governments' involvement.
  • NAFED and Food Corporation of India (FCI) will lead procurement efforts.
  • Price Deficiency Payment Scheme (PDPS): Direct payments to farmers based on the difference between the Minimum Support Price (MSP) and the selling price of their produce.
  • Market Intervention Scheme (MIS): Designed to stabilize prices during market fluctuations.
• Procurement Goals:
  • The government plans to procure 25% of national production for key crops starting from the 2024-25 season, maintaining a 100% procurement rate for crops such as tur, urad, and masur.
• Digital Procurement:
  • Purchases will be facilitated through digital platforms like e Samridhi and e Samyukti, managed by state agencies
• Buffer Stocks:
  • The extension will help build strategic buffer stocks of pulses and onions to manage price swings and curb hoarding.
• Expansion of PDPS:
  • Coverage of PDPS will increase to 40% of state oilseed production, enhancing protection for farmers against price drops.
• Transport and Storage Support:
  • The government will absorb transport and storage costs for crops like tomatoes, onions, and potatoes during peak harvests to stabilize prices.

FERTILIZER SUBSIDY

• Subsidy Approval: The government approved a ?24,474.53-crore subsidy for phosphatic and potassic (P&K) fertilizers for the rabi season (October 2024 to March 2025).
• Nutrient-Based Subsidy (NBS): Governed by the NBS scheme since April 2010, this subsidy will help farmers amid rising global fertilizer prices.
• Government Statement: The subsidy aims to relieve farmers facing increased costs due to international price trends.

RELATED DEVELOPMENTS & ROLE OF NAFED

• The government is considering lifting the ban on non-basmati rice exports, which has been in place since July 2023 to ensure domestic supply.

Role of NAFED

• NAFED: An apex organization under the Ministry of Agriculture, it facilitates marketing cooperatives for agricultural produce, promoting storage, processing, and trading activities for agricultural products.

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