PM-AASHA protects farmers from distress sales below MSP through three price-support mechanisms. Launched September 12, 2018. Three components: PSS (Price Support Scheme), PDPS (Price Deficiency Payment Scheme), and PPSS (Private Procurement and Stockist Scheme). Ensures farmers receive MSP for oilseeds, pulses, and copra through market interventions.
Target Beneficiaries: Oilseed, pulse, and copra farmers; states with market price below MSP
1500
Funding Ratio (Centre:State): Centrally Sponsored (Central govt bears the loss/difference for PDPS and PSS up to a limit)
GS Paper: GS3
Syllabus Tags
Launched in 2018 to address falling farm prices and rural distress despite record harvests.
Physical procurement by Central Nodal Agencies
Direct payment of the difference between MSP and selling price
Metric
Rs. 15,053 Crore
Source: Ministry of Agriculture
PM-AASHA was designed to fix the gaps in the MSP regime where procurement was limited to wheat and rice. Its pilot PDPS (Bhavantar model) avoids the logistical nightmare of physical procurement by paying the price difference. However, PDPS is susceptible to market price manipulation by traders. PPPS (Private participation) remains largely under-utilized due to lack of private interest. The scheme's success is tied to the transparency of Mandi operations (e-NAM).
Compare the Price Support Scheme (PSS) and Price Deficiency Payment Scheme (PDPS) under PM-AASHA. Which is more effective in achieving price stability for farmers?
PM-AASHA is a shift from 'Price Support' to 'Income Support' concepts. Use it to discuss the fiscal implications of various MSP procurement models. It is a tool for 'Crop Diversification' by ensuring remunerative prices for pulses and oilseeds.