PM-AASHA is a new umbrella scheme aimed at ensuring remunerative prices to the farmers for their produce.
The three components that are part of AASHA are:
1. Price Support Scheme
2. Price Deficiency Payment Scheme
3. Pilot of Private Procurement and Stockist Scheme
The other existing schemes of Department of Food and
Public Distribution 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.
PSS – Under the PSS, physical procurement of pulses,
oilseeds and copra will be done by Central Nodal
Besides, NAFED and Food Cooperation of India will also
take up procurement of crops under PSS.
The expenditure and losses due to procurement will be
borne by the Centre.
PDPS – Under the PDPS, the Centre proposes to cover all
oilseeds for which MSP is notified.
The difference between the MSP and actual selling/modal
price will be directly paid into the farmer’s bank account.
National Agricultural Cooperative
marketing Federation of India (NAFED)
was established in 1958.
It is registered under the Multi-State Cooperative Societies act.
Its objective is to promote co-operative
marketing of agricultural produce to benefit
The Food Corporation of India was set up under
the Food Corporation’s Act 1964, with the
following objectives –
1. Effective price support operations for
safeguarding the interests of the farmers
2. Distribution of foodgrains throughout the
country for public distribution system
3. Maintaining satisfactory level of operational
and buffer stocks of foodgrains to ensure
National Food Security
Farmers who sell their crops in recognised mandis within the notified period can benefit from it.
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.
PPSS – In the case of oilseeds, States will have the option to roll out PPSSs in select districts.
Under this, a private player can procure crops at MSP when market prices drop below MSP and whenever
authorized by the state/UT government to enter the market.
The private player will then be compensated through a service charge up to a maximum of 15% of the MSP.