Key Highlights
- PM‑AASHA has been prolonged to the fiscal year 2025‑26 to safeguard farmer incomes and temper food‑price fluctuations.
- The Price Support Scheme now targets up to 25% of national pulse, oilseed and copra output, with full procurement for tur, urad and masur in 2024‑25.
- A financial guarantee of ₹45,000 crore underpins procurement logistics, enhancing coverage and efficiency.
- Tur procurement has been launched in nine states, aiming for 13.22 LMT in Kharif 2024‑25; 0.15 LMT has already reached 12,006 farmers.
- Price Stabilization Fund and Price Deficit Payment Scheme continue to buffer market volatility and bridge MSP‑market gaps.
Detailed Insights
The central government has taken a decisive step by extending the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM‑AASHA) through 2025‑26. The extension is coupled with a broadened procurement ambit: under the Price Support Scheme (PSS), the state will purchase up to a quarter of the country’s aggregate pulse, oilseed and copra production at Minimum Support Prices (MSP). For the 2024‑25 Kharif season, this commitment rises to 100% of the national output of tur (arhar), urad and masur, ensuring that growers of these staples receive remunerative returns even when market rates dip.
To buttress these purchases, a financial guarantee of ₹45,000 crore has been earmarked, facilitating smooth cash‑flow for agencies such as NAFED and NCCF. Parallelly, the Price Stabilization Fund (PSF) maintains buffer stocks of volatile staples like onions and pulses, while the Price Deficit Payment Scheme (PDPS) reimburses farmers for any shortfall between MSP and prevailing market prices, thereby sustaining production incentives.
Operationally, the government has inaugurated Tur procurement across nine states for Kharif 2024‑25, setting a target of 13.22 lakh metric tonnes (LMT). By 15 February 2025, 0.15 LMT had already been bought, directly benefitting 12,006 cultivators in Andhra Pradesh, Karnataka, Maharashtra and Telangana. This rapid rollout exemplifies an intent to lock in fair prices early in the season, curbing speculative price spikes and protecting consumer interests.
Key Concepts
- Price Support Scheme (PSS): Government‑backed procurement of designated crops at MSP to guarantee farmers a minimum revenue.
- Price Stabilization Fund (PSF): A reserve pool used to release buffer stocks when market prices become erratic, ensuring price stability for essential foods.
- Price Deficit Payment Scheme (PDPS): Compensation mechanism that pays the difference between MSP and the actual market price to farmers.
- Financial Guarantee: An assurance of up to ₹45,000 crore provided by the Union Treasury to support procurement agencies’ cash requirements.
- Procurement Ceiling: The maximum proportion of national production that the government commits to purchase under PSS, set at 25% for pulses and oilseeds.