extended the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) price support scheme until 2025-26, with an outlay of ₹35,000 crore aimed at providing better prices for farmers and managing price volatility of essential commodities.

ABOUT PM AASHA

  • Components of PM-AASHA:
    • Price Support Scheme (PSS): Physical procurement of key crops like pulses, oilseeds, and copra by Central Nodal Agencies, with state governments' involvement.
    • NAFED and Food Corporation of India (FCI) will lead procurement efforts.
    • Price Deficiency Payment Scheme (PDPS): Direct payments to farmers based on the difference between the Minimum Support Price (MSP) and the selling price of their produce.
    • Market Intervention Scheme (MIS): Designed to stabilize prices during market fluctuations.
  • Procurement Goals:
    • The government plans to procure 25% of national production for key crops starting from the 2024-25 season, maintaining a 100% procurement rate for crops such as tur, urad, and masur.
  • Digital Procurement:
    • Purchases will be facilitated through digital platforms like e Samridhi and e Samyukti, managed by state agencies
  • Buffer Stocks:
    • The extension will help build strategic buffer stocks of pulses and onions to manage price swings and curb hoarding.
  • Expansion of PDPS:
    • Coverage of PDPS will increase to 40% of state oilseed production, enhancing protection for farmers against price drops.
  • Transport and Storage Support:
    • The government will absorb transport and storage costs for crops like tomatoes, onions, and potatoes during peak harvests to stabilize prices.

FERTILIZER SUBSIDY

  • Subsidy Approval: The government approved a ₹24,474.53-crore subsidy for phosphatic and potassic (P&K) fertilizers for the rabi season (October 2024 to March 2025).
  • Nutrient-Based Subsidy (NBS): Governed by the NBS scheme since April 2010, this subsidy will help farmers amid rising global fertilizer prices.
  • Government Statement: The subsidy aims to relieve farmers facing increased costs due to international price trends.

RELATED DEVELOPMENTS & ROLE OF NAFED

  • The government is considering lifting the ban on non-basmati rice exports, which has been in place since July 2023 to ensure domestic supply.
Role of NAFED
  • NAFED: An apex organization under the Ministry of Agriculture, it facilitates marketing cooperatives for agricultural produce, promoting storage, processing, and trading activities for agricultural products.