[pib] Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)

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Mains Paper 3: Agriculture | Issues related to direct & indirect farm subsidies & minimum support prices

From UPSC perspective, the following things are important:

Prelims level: PM – AASHA and its components

Mains level: Various support schemes for farmers and their effectiveness


News

Context

Giving a major boost to the pro-farmer initiatives of the Government and in keeping with its commitment and dedication for the Annadata, the Union Cabinet has approved a new Umbrella Scheme “Pradhan Mantri Annadata Aay Sanrakshan Abhiyan’ (PM-AASHA).

Why such Scheme?

  1. Increasing MSP is not adequate and it is more important that farmers should get full benefit of the announced MSP.
  2. For this, government realizes that it is essential that if price of the agriculture produce market is less than MSP, then govt. should purchase either at MSP or work in a manner to provide MSP for the farmers through some other mechanism.

PM-AASHA

  1. The Scheme is aimed at ensuring remunerative prices to the farmers for their produce as announced in the Union Budget for 2018.
  2. Government has already increased the MSP of kharif crops by following the principle of 1.5 times the cost of production.
  3. It is expected that the increase in MSP will be translated to farmer’s income by way of robust procurement mechanism in coordination with the State Governments.
  4. The new Umbrella Scheme includes the mechanism of ensuring remunerative prices to the farmers and is comprised of-
  • Price Support Scheme (PSS),
  • Price Deficiency Payment Scheme (PDPS)
  • Pilot of Private Procurement & Stockist Scheme (PPPS).
  1. The other existing schemes of Department of Food and Public Distribution (DFPD) for procurement of paddy, wheat and nutri-cereals/coarse grains and of Ministry of Textile for cotton and jute will be continued for providing MSP to farmers for these crops.

Pilot of Private Procurement & Stockist Scheme (PPPS)

  1. Cabinet has decided that for oilseeds, states have the option to roll out Private Procurement Stockist Scheme (PPSS) on pilot basis in selected district/APMC(s) of district involving the participation of private stockiest.
  2. The pilots district/selected APMC(s) of district will cover one or more crop of oilseeds for which MSP is notified.
  3. Since this is akin to PSS, in that in involves physical procurement of the notified commodity, it shall substitute PSS/PDPS in the pilot districts.
  4. The selected private agency shall procure the commodity at MSP in the notified markets during the notified period from the registered farmers in consonance with the PPSS Guidelines.
  5. But whenever the prices in the market fall below the notified MSP maximum service charges up to 15% of the notified MSP will be payable.

Price Support Scheme (PSS)

  1. In Price Support Scheme (PSS), physical procurement of pulses, oilseeds and Copra will be done by Central Nodal Agencies with proactive role of State governments.
  2. It is also decided that in addition to NAFED, Food Cooperation of India (FCI) will take up PSS operations in states /districts.
  3. The procurement expenditure and losses due to procurement will be borne by Central Government as per norms.

Price Deficiency Payment Scheme (PDPS)

  1. Under PDPS it is proposed to cover all oilseeds for which MSP is notified.
  2. In this direct payment of the difference between the MSP and the selling/modal price will be made to pre-registered farmers selling his produce in the notified market yard through a transparent auction process.
  3. All payment will be done directly into registered bank account of the farmer.
  4. This scheme does not involve any physical procurement of crops as farmers are paid the difference between the MSP price and Sale/modal price on disposal in notified market.
Agricultural Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.
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