PM-Aasha Yojana: Government Approves ₹35,000 Crore to Boost Farmers Income

Key Highlights

• ₹35,000 crore allocated by the government until 2025-26.
• Fair crop prices ensured through the Price Support Scheme (PSS).
• 100% procurement of tur, urad, and lentils for the 2024-25 season.
• ₹45,000 crore government guarantee for pulse, oilseed, and copra procurement.
• Expansion of Price Stabilization Fund (PSF) and Market Intervention Scheme (MIS).

The Indian government continues its efforts to increase farmer’s income with various schemes aimed at ensuring better prices for their crops. One such initiative is the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA). Recently, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the continuation of this scheme, allocating ₹35,000 crore by 2025-26 under the 15th Finance Commission. This scheme is designed to benefit both farmers and consumers by stabilizing crop prices.

Also Read: SUBHADRA Scheme Launched: Rs 50,000 Financial Support for Women Over 5 Years

What is PM-AASHA Yojana?

Launched in September 2018, the PM-AASHA Yojana aims to provide farmers with fair prices for their crops. The central government recently extended the scheme, hoping it will help increase the income of farmers and stabilize prices for essential commodities. This will not only support farmers in selling their produce at profitable rates but also protect consumers from significant price fluctuations.

Key Schemes Under PM-AASHA Yojana

The PM-AASHA Yojana integrates several schemes to increase farmer’s income, including:

• Price Support Scheme (PSS)
• Price Stabilisation Fund (PSF)
• Price Deficit Payment Scheme (PDPS)
• Components of the Market Intervention Scheme (MIS)

Crops Purchased at MSP Under PM-AASHA Yojana

Under the Price Support Scheme (PSS), the government will procure pulses, oilseeds, and copra at the Minimum Support Price (MSP). Starting from the 2024-25 season, the government will purchase 25% of the national production of these crops. However, tur, urad, and lentils will see 100% procurement during the 2024-25 season, ensuring better prices for farmers.

Also Read: Government Announces New Policies to Boost Farmer’s Income with Better Prices for Mustard, Sunflower, and Groundnut Crops

Government Guarantee for Crop Procurement

The central government has enhanced its guarantee for procuring pulses, oilseeds, and copra under MSP to ₹45,000 crore. This enables the Department of Agriculture and Farmers Welfare (DA&FW) to purchase more crops at MSP, benefitting farmers already registered on the e-Samriddhi Portal and e-Samyukti Portal. This move encourages farmers to grow more pulses and oilseeds, reducing India's dependency on imports.

Expansion of the Price Stabilization Fund (PSF)

The Price Stabilization Fund (PSF) aims to maintain buffer stocks of essential commodities like pulses and onions to control price volatility. The government will also procure pulses at market prices when they exceed MSP, providing relief to both consumers and farmers. This expansion will help stabilize the prices of other crops, such as tomatoes, ensuring affordability for consumers and fair prices for farmers.

Benefits of the Price Deficit Payment Scheme (PDPS)

The Price Deficit Payment Scheme (PDPS) encourages states to implement it for oilseeds. The scheme has been expanded to cover 40% of a state's oilseed production, up from the previous 25%. The government will compensate farmers for the difference between the MSP and the market price, providing financial relief when prices drop.

Market Intervention Scheme (MIS) Expansion

Under the expanded Market Intervention Scheme (MIS), the government has increased coverage from 20% to 25% of perishable horticultural crops. The scheme allows direct payments to farmers, reducing the need for government procurement. The government will also cover transportation and storage costs for crops like tomatoes, onions, and potatoes (TOP), ensuring fair prices for farmers and affordable produce for consumers.

Also Read: Government to Send Farmers Abroad for Training: Apply Now!

CMV360 Says

The PM-AASHA Yojana is a significant initiative aimed at improving farmer’s income and ensuring fair crop prices. With the government's approval of ₹35,000 crore for the continuation of the scheme, farmers are expected to benefit from better support for their crops. By stabilizing prices and providing financial assistance through schemes like PSS, PDPS, and MIS, the government is committed to supporting India's agricultural sector while benefiting consumers.