In a major relief for the farmers of India, the Cabinet has approved the massive funding of 15,053 crore rupees for the procurement of MSP policy for farmers under the ‘Pradhan Mantri Annadata Aay Sanrakshan Abhiyan’ (PM-AASHA) plan, so that farmers get the what remunerative prices for their produces as per the Union Budget for 2018.

On Wednesday, the Cabinet meeting headed by PM Modi passed a major scheme under the new umbrella policy ‘Pradhan Mantri Annadata Aay Sanrakshan Abhiyan’ (PM-AASHA) to benefit farmers of India. The policy will give a major booster to the pro-farming benefits and will allow farmers to sell crop produces are remunerative prices. The this massive funding of Rs 15,053 crores will be spent in two financial years – of which Rs 6250 crores will be spent in this financial year and the remaining fund will be used in upcoming financial year.

The new PM-AASHA will focus on compensating oil-seeds farmers if rates fall below the MSP and also allow procurement of the agro-produces. Agriculture Minister Radha Mohan Singh told the reporters after the Cabinet meeting, “The PM-AASHA is aimed at ensuring remunerative prices to the farmers for their produce as announced in the Union Budget for 2018. This is a historic decision.” Under the PM-AASHA, states will be allowed to choose any one scheme from total of three schemes, to undertake procurement when the prices of crops fall down below the MSP. Those schemes are:

  • Price Support Scheme (PSS)
  • Price Deficiency Payment Scheme (PDPS)
  • Pilot of Private Procurement Stockist Scheme (PPSS)

The Price Deficiency Payment Scheme is recently framed to compensate only the oil-seeds farmers. This PDP scheme will pay the price difference between the MSP and the monthly average prices of oilseeds, allowing upto 25 percentage of the oilseeds production in a state. The farmers can choose the currently existing Price Support Scheme (PSS) as well. This PSS will procure the commodities under the MSP policy when the prices of crops fall down below the MS.Under the MSP policy, the government fixes the rates for 23 notified crops which are grown in Kharif and Rabi seasons.