Cabinet Approves Extension of PM-AASHA Schemes for Farmers
The Union Cabinet has approved the continuation of the PM-AASHA schemes to ensure fair pricing for farmers and manage price volatility of essential commodities. PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan) aims to provide remunerative prices to farmers, ensuring they receive a guaranteed Minimum Support Price (MSP) for their produce.
Key Components
PM-AASHA consists of:
Price Deficit Payment Scheme (PDPS): Compensates farmers when market prices fall below the MSP. The central government covers the difference, limited to 15% of MSP.
Price Support Scheme (PSS): Provides market intervention to purchase crops directly at MSP.
Price Stabilisation Fund (PSF): Aims to stabilize prices of essential commodities.
Market Intervention Scheme (MIS): Focuses on managing price volatility through strategic purchases.
Financial Implications
The total financial outlay for PM-AASHA is set at ₹35,000 crore during the 15th Finance Commission Cycle, lasting until 2025-26. Under the PDPS guidelines, farmers are eligible for a maximum compensation of 25% of MSP based on the notified rates.
Increased Coverage and Implementation
To incentivise state participation in the PDPS for oilseeds, the coverage has increased from 25% to 40% of state production, and the implementation period has been extended from 3 months to 4 months.
More About PM-AASHA
PM-AASHA (Pradhan Mantri Annadata Aay Sanraks han Abhiyan) is an Indian government initiative aimed at safeguarding farmers’ incomes and ensuring fair prices for their produce. Launched in 2019, it encompasses three major schemes: PM’s MSP (Minimum Support Price), the Pradhan Mantri Kisan Samman Nidhi, and the Agri-Market Infrastructure Fund. The program focuses on enhancing farmers’ access to markets, promoting agricultural diversity, and providing financial support. Its implementation involves collaboration with state governments and aims to reduce the income disparity among farmers nationwide.
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Month: Current Affairs - September, 2024
Category: Legal & Constitution Current Affairs