Please enable JavaScript.
Coggle requires JavaScript to display documents.
PRADHAN MANTRI ANNADATA AAY SANRAKSHAN ABHIYAN (PM-AASHA) (Significance of…
PRADHAN MANTRI ANNADATA AAY SANRAKSHAN ABHIYAN (PM-AASHA)
Background
Minimum Support Price (MSP) system suffers from various shortfalls
limited geographical reach
crop coverage
prices of key agricultural commodities have fallen below their MSP
PM-AASHA scheme thus aims to plug the gaps in system, address issues in MSP system and give better returns to farmers
About the scheme
has three components complementing the existing schemes of the Department of Food and Public Distribution
Price Support Scheme (PSS):
physical procurement of pulses, oilseeds and copra will be done by Central Nodal Agencies. Besides National Agricultural Cooperative Marketing Federation of India Ltd (NAFED), FCI will also take up procurement of crops under PSS
Price Deficiency Payment Scheme (PDPS):
will cover all oilseeds for which MSP is notified and Centre will pay the difference between the MSP and actual selling/ model price to the farmer directly into his bank account
Pilot of Private Procurement and Stockiest Scheme (PPSS):
States will havethe option to roll out PPSS in select districts where a private player can procure crops at MSP when market prices drop below MSP
Significance of the Scheme
An innovative MSP-plus approach to the problem of non-remunerative prices
scheme will cover gaps in the procurement and compensation mechanism for crops
Ensure crop diversification and reduce stress on soil and water
Better translation of increased MSP to farmer’s income
Increased financial provisions
It is a significant step towards enhancing productivity
Challenges
Agricultural markets must function transparently and government must take steps to break the traders’ cartel
Providing funds for PSS would be a key challenge for Centre
Warehousing and storage infrastructure shortage not addressed
Way Forward
E-NAM and inter-market competition must be promoted
robust pro-farmer export policy must be considered
Successful implementation and effective private participation are the key to overall success of the scheme