PM ASHA Scheme, Components and Features

PM-ASHA is a scheme launched by the Government of India to ensure fair prices for farmers’ produce and to strengthen procurement mechanisms for crops covered under the Minimum Support Price (MSP).

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Context: The Union Cabinet has approved the continuation of the PM-ASHA Scheme. It will now have the components of PSS, PSF the Price Deficit Payment Scheme (PDPS) and the Market Intervention Scheme (MIS).

Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-ASHA)

It is an Umbrella scheme which aims to regulate price fluctuations to ensure fair prices for farmers.
Nodal Ministry: Ministry of Agriculture & Farmers Welfare

Components of the Scheme

Price Support Scheme (PSS)

The government will physically procure pulses, oilseeds, and copra through Central Nodal Agencies, with active participation from states.
In addition to National Agricultural Cooperative Marketing Federation of India (NAFED), Food Corporation of India (FCI) will also take up PSS operations in states /districts.
Procurement costs and losses will be borne by the central government.

Price Deficiency Payment Scheme (PDPS)

This scheme covers all oilseeds with a notified Minimum Support Price (MSP).
Farmers who sell their produce in notified market yards through transparent auctions receive a direct payment for the difference between the MSP and the selling price.
This payment is deposited directly into the farmer’s registered bank account. The scheme does not involve physical procurement.

Price Stabilisation Fund (PSF)

It aims to protect consumers and the economy from sudden price changes in essential commodities.
It builds a buffer stock of key food commodities, such as pulses and onions, and releases them into the market when prices rise.

Market Intervention Scheme (MIS)

This scheme is to protect farmers from distress sales of their produce.
It is implemented when prices fall below economic levels or the cost of production, or when there’s a bumper crop during peak arrival periods.
The central government and the state or union territory government share losses on a 50:50 basis, or 75:25 in the case of North-Eastern states.
Under this procurement is done by State Procuring Agencies.