The Government has given the green light to a new umbrella scheme called “Pradhan Mantri Annadata Aay Sanrakshan Abhiyan” (PM-AASHA), with the goal of assuring Minimum Support Price (MSP) to our hardworking farmers. This initiative, outlined in the 2018 Union Budget, is designed to make sure that farmers receive fair prices for their produce. By enhancing the MSP, we aim to boost the income of our farmers and strengthen the procurement process in collaboration with State Governments.
Components of the PM-AASHA Scheme
The PM AASHA Scheme as the following components:
Price Support Scheme (PSS)
- The Price Support Scheme (PSS) aims to assist farmers in the procurement of pulses and oilseeds.
- Central Nodal Agencies, supported by state governments, will manage the procurement process.
- The Food Corporation of India, in collaboration with NAFED, will establish the PSS, and the Central Government will cover all associated expenses.
Price Deficiency payment Scheme (PDPS)
- The Price Deficiency Payment Scheme (PDPS) focuses on all oilseeds covered under the Support Price (SP) notification.
- Instead of physical procurement, registered farmers will receive direct payments.
- The scheme ensures that farmers receive the price difference between the Minimum Support Price (MSP) and the actual selling price, directly credited to their registered bank accounts.
Pilot of Private Procurement & Stockist Scheme (PPPS)
- The Private Procurement & Stockist Scheme (PPPS) introduces private sector participation in procurement operations.
- States can opt for a pilot implementation of PPPS in selected Agricultural Produce Market Committees (APMCs).
- This pilot program encourages collaboration between the public and private sectors, offering flexibility in implementation to meet local needs.
Challenges for the PM-AASHA Scheme
- The country’s procurement infrastructure for wheat and rice is not getting the necessary strengthening, despite being considered robust.
- According to a study conducted by K.S. Aditya in 2017, only 24% of households were aware of the Minimum Support Price (MSP) in place. Additionally, subsequent studies revealed that MSPs were operational in only a few states.
- Designated state agencies limited their acquisition of produce, excluding wheat and rice, which led to low public awareness.
- The NITI Aayog assessment emphasized that several states considered the procurement facilities ‘insufficient’ for sustained effectiveness.
Conclusion
Improving procurement centers, especially focusing on facilities like dying yards and weighing bridges, is essential. We need more storage spaces to prevent wastage, and additional godowns should be built for this purpose. To cut down on transportation costs, it’s crucial to have procurement centers right in the villages. NITI Aayog suggests that robust procurement infrastructure is vital for the success of farmer-oriented welfare schemes.
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