Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)

Introduction

Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) is an umbrella scheme aimed at ensuring remunerative prices to the farmers for their produce.
Giving a major boost to the pro-farmer initiatives of the Government and in keeping with its commitment and dedication for the Annadata, the Union Cabinet has approved a new Umbrella Scheme “Pradhan Mantri Annadata Aay SanraksHan Abhiyan’ (PM-AASHA).
The Scheme is aimed at ensuring remunerative prices to the farmers for their produce as announced in the Union Budget for 2018.

Background:

Increasing MSP is not adequate and it is more important that farmers should get the full benefit of the announced MSP.
For the same, it is essential that if the price of the agriculture produce market is less than MSP, then in that case state governments and the central government should purchase either at MSP or work in a manner to provide MSP for the farmers through some other mechanism.

Components of PM-AASHA

The new Umbrella Scheme includes the mechanism of ensuring remunerative prices to the farmers and is comprised of

Price Support Scheme (PSS)

In Price Support Scheme (PSS), physical procurement of pulses, oilseeds and Copra will be done by Central Nodal Agencies with proactive role of State governments.
It is also decided that in addition to NAFED, Food Cooperation of India (FCI) will take up PSS operations in states /districts.

The procurement expenditure and losses due to procurement will be borne by Central Government as per norms.

Price Deficiency Payment Scheme (PDPS)

Under Price Deficiency Payment Scheme this scheme (PDPS), it is proposed to cover all oilseeds for which MSP is notified.
In this direct payment of the difference between the MSP and the selling/modal price will be made to pre-registered farmers selling his produce in the notified market yard through a transparent auction process.
All payment will be done directly into registered bank account of the farmer.
This scheme does not involve any physical procurement of crops as farmers are paid the difference between the MSP price and Sale/modal price on disposal in notified market.
The support of central government for PDPS will be given as per norms.

Pilot of Private Procurement & Stockist Scheme (PPPS).

It has also been decided that participation of private sector in procurement operation needs to piloted so that on the basis of learnings the ambit of private participation in procurement operations may be increased.
Therefore in addition to PDPS, it has been decided that for oilseeds, states have the option to roll out Private Procurement Stockist Scheme (PPSS) on pilot basis in selected district/APMC(s) of district involving the participation of private stockiest.
The pilot district/selected APMC(s) of district will cover one or more crop of oilseeds for which MSP is notified. Since this is akin to PSS, in that in involves physical procurement of the notified commodity, it shall substitute PSS/PDPS in the pilot districts.
The selected private agency shall procure the commodity at MSP in the notified markets during the notified period from the registered farmers in consonance with the PPSS Guidelines, whenever the prices in the market fall below the notified MSP and whenever authorized by the state/UT government to enter the market and maximum service charges up to 15% of the notified MSP will be payable.

Analysis

A recent analysis by agricultural experts has revealed that Pradhan Mantri Annadata Aay Sanrakshan Abhiyan will make no difference to the plight of farmers on the ground this season, and will not improve their chances of getting MSP for their crops.
Only Madhya Pradesh has opted for the cash payment component.
No other state has readied the IT infrastructure needed to implement it.
With regard to the private stockists scheme, guidelines were issued to states last week.
It will probably take states and private players about six months.
And there may not be any takers in the current season.