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PM-AASHA: Ensuring Fair Prices and Reducing Middlemen to Empower Farmers

RR Team, March 21, 2025March 21, 2025

The Indian government continues its strong commitment to protecting farmers and ensuring fair prices for their produce through the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA). This integrated scheme, designed to reduce dependence on middlemen, provides direct support to farmers through various measures, including the Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS), and Market Intervention Scheme (MIS). By offering financial assistance and market security, PM-AASHA not only helps stabilize prices but also ensures that essential agricultural commodities remain available at affordable rates for consumers.

Under the Price Support Scheme, the government steps in when market prices for key crops like pulses, oilseeds, and copra fall below the Minimum Support Price (MSP) during peak harvesting seasons. In such cases, procurement is carried out by agencies like the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and the National Co-operative Consumers’ Federation of India Ltd. (NCCF), directly from pre-registered farmers. This system eliminates the role of intermediaries, ensuring that farmers receive a fair price for their produce without exploitation. Recognizing the need to boost domestic production and reduce reliance on imports, the government has lifted the 25% procurement ceiling on Tur, Urad, and Masur dal for 2024-25, providing additional security to pulse growers.

For crops that do not have a fixed MSP, the Market Intervention Scheme provides critical relief. This applies to perishable agricultural and horticultural products such as tomatoes, onions, and potatoes, where a sudden price drop of at least 10% can lead to distress sales. In such cases, the government, in collaboration with state authorities, purchases up to 25% of the state’s production at a pre-determined Market Intervention Price (MIP). Special provisions have also been introduced to cover the transportation and storage costs of these commodities, ensuring they can be moved from surplus-producing states to regions where they are in demand. This intervention not only supports farmers but also helps control price volatility, preventing extreme fluctuations that could harm both producers and consumers.

The scheme has undergone key expansions to enhance its reach and impact. The coverage under PDPS has been increased from 25% to 40% of the state’s production for oilseeds, allowing more farmers to receive compensation for price differences. Furthermore, a new component under MIS enables direct payment of the price difference between the Market Intervention Price and the actual selling price for perishable crops. This ensures that farmers are not left vulnerable to market shocks and can sustain their livelihoods despite unpredictable price movements.

To maximize the effectiveness of these initiatives, the government has significantly expanded procurement infrastructure. Additional purchase centers are being established in key agricultural regions, complementing existing mandis and storage facilities. These efforts aim to make the procurement process more accessible and efficient, reducing logistical challenges for farmers. The initiative reflects a broader commitment to rural welfare, ensuring that India’s food producers receive the support they need to thrive.

With these comprehensive measures, PM-AASHA stands as a strong pillar of economic security for Indian farmers. By providing direct financial aid, stabilizing markets, and reducing reliance on middlemen, the scheme strengthens the agricultural sector and paves the way for a more resilient and self-sufficient farming community. As the government continues to refine and expand its reach, it remains dedicated to ensuring that the country’s farmers receive fair compensation for their hard work, reinforcing their vital role in India’s economy and food security.

 

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