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Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) (UPSC/RAS/PSI)

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  • Nodal Ministry- Ministry of Agriculture and Farmers Welfare (with PSF managed by Department of Consumer Affairs)
  • Implementing Agencies- NAFED, NCCF, State Nodal Agencies, and Primary Agricultural Credit Societies (PACS)

Macro Budgetary Allocations

  1. Unified Umbrella Framework- PM-AASHA was launched in September 2018 to ensure remunerative prices for farmers while maintaining price stability for consumers.
  2. 32% Budgetary Expansion- The budget allocation increased from ₹5,437.99 crore in FY 2024–25(actual expenditure) to ₹6,941.36 crore in 2025–26, reaching ₹7,200 crore in FY 2026–27 (BE).
  3. Reducing Distress Sales- Focuses on pre-season procurement readiness across states to prevent distress selling during post-harvest price crashes.
  4. Commodity Focus- Covers pulses, oilseeds, copra, and perishable horticultural produce outside the conventional wheat-paddy FCI procurement basket.
  5. Producer-Consumer Balance- Balances farmer price support with buffer-stock management to curb retail inflationary spikes.

The Four Pillars of PM-AASHA

  1.         Price Support Scheme (PSS)- Physical procurement of pulses, oilseeds & copra at MSP
  2.         Price Stabilization Fund (PSF)- Strategic buffer stock to control consumer price spikes
  3.         Price Deficiency Payment Scheme (PDPS)- Direct DBT of MSP gap (up to 15%) without physical buying
  4.           Market Intervention Scheme (MIS)- 50:50 Centre-State support for perishables (TOP crops)
  1. Price Support Scheme (PSS)-

a.     Undertakes physical procurement of pulses, oilseeds, and copra when open-market prices fall below notified MSP.

b.     Standard procurement is permitted up to 25% of the State/UT's production (with provision for Committee of Secretaries to approve up to 25% of national production).

c.     100% Procurement Exemption- To encourage pulse self-sufficiency and reduce import dependence, procurement of Tur (Arhar), Urad, and Masur (Lentil) is permitted up to 100% of state production.

  1. Price Stabilization Fund (PSF)-

a.     Maintains strategic buffer stocks of critical agri-horticultural commodities (pulses, onions, potatoes) to manage supply during lean seasons.

b.     Merged under the PM-AASHA umbrella while continuing administrative oversight under the Department of Consumer Affairs.

  1. Price Deficiency Payment Scheme (PDPS)-

a.     Involves zero physical procurement; directly pays registered farmers the gap between the MSP and the modal market price into their bank accounts.

b.     Coverage capped at up to 15% of the MSP value, primarily utilized for oilseeds to reduce public warehousing and logistical costs.

  1. Market Intervention Scheme (MIS)-

a.   Protects growers of non-MSP perishable crops (e.g., Tomato, Onion, Potato - TOP) when mandi prices drop by at least 10% over the previous normal season.

b.   Operates on a cost-sharing model between the Central and State governments for losses incurred during procurement operations.

Production Cost vs. MSP Margins (FY 2026–27 Returns)

  1. Commitment to Swaminathan Commission Formula- Re-affirms the policy mandate of fixing MSP at a minimum of 1.5 times (50% profit margin) over the all-India weighted average cost of production (A2+FL).
  2. Margin Incentives for Cash & Oilseed Crops- Crops like Wheat and Yellow Soybean provide significant income cushions to encourage crop diversification away from water-intensive staples.

Digital Integration & Farm-to-Market Infrastructure

  1. Digital Public Platforms (e-Samriddhi & e-Samyukti)- Facilitate pre-registration of farmers, land-record integration, and biometric authentication for direct procurement.
  2. e-NAM Market Integration-
    1. Integrated 1,656 APMC mandis across 23 States and 4 UTs, facilitating trade valued at ₹4,94,847 crore.
    2. Registered 4,776 FPOs on e-NAM and onboarded 7,334 FPOs onto ONDC for open digital commerce.
  3. Agriculture Infrastructure Fund (AIF) Synergies- Sanctioned loans worth ₹96,426 crore for 2,14,437 projects, mobilizing total investments exceeding ₹1.66 lakh crore.
  4. Scientific Storage Footprint- Sanctioned 50,249 warehouses creating 992.6 LMT in storage capacity, alongside 25,081 market infrastructure projects to curb post-harvest losses.
  5. Perishable Logistics Support- Introduces specialized transportation subsidies for TOP crops under MIS to prevent localized gluts and transport bottlenecks.

State-Level Implementation- Bihar & Chhattisgarh Case Studies

          1.Bihar (Lentil / Masoor Procurement Drive)

First Organized Masoor Drive- Initiated organized lentil procurement through NCCF and NAFED via 48 Primary Agricultural Credit Societies (PACS) and FPOs.

  1. Procurement Volumes
    a.     NCCF- Procured 1,042.65 MT of masoor, benefiting 285 registered farmers.
    b.     NAFED- Procured 1,814.13 MT of masoor, benefiting 455 registered farmers.
            i. Chhattisgarh (Diversified Pulse & Oilseed Operations)
  1. Grassroots PACS Network- Operationalized across 200 PACS and 12 FPOs.
  2. Procurement Volumes-

a. NCCF- Procured 18,392.23 MT of Chana (Gram), 22.23 MT of Masoor, and 1,035.02 MT of Mustard, benefiting 13,790 farmers.

b.NAFED- Procured 17,020.65 MT of Chana and 355.05 MT of Masoor, benefiting 13,673 farmers. 

Strategic Significance

  1. Incentivizing Crop Diversification- 100% procurement ceilings for Tur, Urad, and Masur incentivize farmers to shift from paddy-wheat monoculture to soil-enriching pulses.
  2. Fiscal Efficiency of PDPS- The deficiency payment route avoids physical handling, gunny bag purchases, storage rent, and transit losses, lowering the government's food subsidy footprint.
  3. Elimination of Intermediaries- Biometric farmer verification tied to digitised land records eliminates ghost beneficiaries and prevents traders from recycling produce through public procurement counters.

Source: PIB