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.