PM AASHA Scheme: Objectives, Components, Functions, Benefits & UPSC Notes

PM AASHA Scheme also known as Pradhan Mantri Annadata Aay Sanrakshan Abhiyan. It is a comprehensive scheme of the Government of India announced in September 2018. It aims to assist farmers in distress due to crop failure.

This topic of the "PM AASHA Scheme" is essential from the perspective of the UPSC IAS Examination, which falls under General Studies Paper 3 (Mains) and General Studies Paper 1 (Preliminary) and particularly in the Agriculture section of the UPSC Exam. 

This article will discuss the 'PM AASHA Scheme' and learn about Pradhan Mantri Annadata Aay Sanraksan Abhiyan, Its Objectives, Components, Functions, & More!

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What is the Pradhan Mantri AASHA Scheme?

PM AASHA Scheme (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan) is an umbrella scheme designed to ensure farmers receive fair prices for their produce.

• The scheme is part of the Union Government's commitment in the 2018 Union Budget to pay farmers a fair price for their produce.
• The scheme is intended to supplement the increase in Minimum Support Price (MSP), translated into farmer income through a robust procurement mechanism developed in collaboration with the states.
• Additionally, the Indian government implemented this program in response to farmer unrest nationwide due to many critical agricultural commodities trading below their MSP.

Components of the PM AASHA Scheme

The three components outlined in the PM Annadata Aay Sanrakshan Abhiyan are thus aimed at increasing agricultural productivity and lowering cultivation costs, thereby growing and securing farmer income in the long run.

• Price Support Scheme (PSS)
• Price Deficiency Payment Scheme (PDPS)
• The pilot of the Private-Procurement and Stockist Scheme (PBS)

Price Support Scheme (PSS)

Under the Price Support Plan (PSS), Central Nodal Agencies will physically procure pulses, oilseeds, and copra with the proactive assistance of state governments. According to the regulations, the Central Government will cover the costs and losses associated with a purchase. Also, the government would buy 25% of farmers' marketable surplus for qualified crops. For the agencies to purchase from farmers, the Union Government has set aside around Rs 16,000 crores as a bank guarantee. The scheme will be implemented with the assistance of the Food Corporation of India (FCI) and the National Agricultural Cooperative Marketing Federation of India (NAFED).

Price Deficiency Payment Scheme (PDPS)

By the Price Deficiency Payment Plan, the state would pay the difference between mandi prices and the MSP (PDPS). The PDPS will cover all oil seeds. There won't be any actual harvesting of the crops. Through a transparent auction process, pre-registered farmers will get the difference between MSP and the selling or modal price for their produce in the informed market yard. All payments will be made directly into the farmer's registered bank account.

The Pilot of Private-Procurement and Stockist Scheme (PBS)

Private sector involvement in procurement activities should be piloted, and its scope may be increased. Along with the government, private companies will buy oilseeds.

As a result, it has been determined that states may pilot the Private Procurement Stockist Scheme (PPSS) in some districts/APMC(s) of districts involving private stockists in addition to the PDPS for oilseeds. One or more oil seed crops for which MSP has been notified will be covered by the district's pilot district and/or chosen APMC(s). This will replace PSS/PDPS in the pilot districts since it is comparable to PSS, involving the actual physical acquisition of the notified commodity.

Objectives of the PM AASHA Scheme

The PM AASHA Scheme aims to ensure fair and remunerative prices to farmers for their produce. It strengthens procurement systems and reduces distress sales by offering multiple support mechanisms. The Pradhan Mantri Annadata Aay Sanrakshan Abhiyan has the following objectives:

• To ensure fair prices for farmers and their products by strengthening the procurement process.
• To improve the physical procurement of pulses, oilseeds, and copra.
• To fill gaps in the MSP-Minimum Support Price.
• To enhance the system of procurement and close the gaps.
• To significantly increase the farmers' income.

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Functioning of PM AASHA Scheme

The PM AASHA Scheme functions through three components—Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS), and Private Procurement & Stockist Scheme (PPSS)—to provide price assurance to farmers for selected crops. The functioning of the PM AASHA scheme is as follows:

• The scheme announces Minimum Support Prices (MSPs) for various crops. This is to ensure remunerative prices for farmers. 
  • These MSPs act as the floor price below which crop procurement does not happen.
• Two government agencies undertake procurement operations under the scheme:
  • Food Corporation of India and NAFED. 
  • State governments may also engage in procurement.
• Procurement centers are set up to buy crops directly from farmers at the announced MSPs. These centers include grain markets, market yards, and villages in the farming clusters.
• Crops are purchased from farmers at the notified MSPs. Payment is made directly into farmers' bank accounts immediately after the sale.
• Under the scheme, procurement operations are undertaken for major crops like paddy, wheat, pulses, and oilseeds. The crops eligible for MSP and procurement vary over states.
• The government bears the difference between the economic cost of procuring crops and their MSPs. This cost is shared between the center and the states.
• The procured food grains under the scheme are used for operations under the National Food Security Act and other welfare schemes.
• The scheme primarily focuses on procurement from small and marginal farmers.

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Benefits of the PM AASHA Scheme

The PM AASHA Scheme benefits farmers by guaranteeing minimum support prices and reducing market risk. It promotes income stability, especially for growers of oilseeds and pulses. The following are the benefits of the PM–AASHA scheme:

• The PM-AASHA scheme represents an innovative, MSP-plus solution to the problem of no remunerative prices.
• This scheme's three distinct components would fill gaps in crop procurement and compensation mechanisms.
• The scheme will also help to revitalize the rural economy by increasing farmer income.
• The scheme can ensure crop diversification and reduce soil and water stress by improving oilseed prices.
• Physical procurement, storage, and disposal are no longer necessary with the introduction of PM-AASHA.

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Concerns and Challenges of the PM AASHA Scheme

The PM AASHA Scheme faces challenges like limited crop coverage, slow procurement, and inadequate infrastructure. These issues hinder its effectiveness in ensuring fair prices for all eligible farmers. Here are some of the concerns of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) scheme:

• There is a lack of awareness about the scheme among farmers, especially small and marginal farmers. This is due to many factors:
  • poor communication and outreach efforts by the government,
  • illiteracy among farmers, and 
  • the remoteness of many rural areas.
• The transaction costs associated with the scheme are high. This is due to: 
  • the need for farmers to travel to collection centers, 
  • the need for grading and processing of produce, and 
  • the need for marketing and transportation of produce.
• The prices offered to farmers under the scheme are often lower than the market prices. This is due to many factors:
  • high cost of production,
  • low demand for agricultural produce, and 
  • government's monopoly on the procurement of agricultural produce.
• Government officials and private contractors have mismanaged the scheme. 
  • This has led to corruption and the diversion of funds away from farmers.
• The infrastructure for storing, processing, and marketing agricultural produce is inadequate. 
• The scheme is heavily dependent on government support. This makes it vulnerable to political interference and changes in government policies.

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Conclusion

Its effective implementation will determine the PM-success AASHA. The government should make it easy for farmers to register. Additionally, the government needs to effectively stop traders from manipulating prices. The Centre must first break the trader lobbies at mandis. This could be accomplished by broadening the competition by interconnecting mandis.

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