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Understanding PM-AASHA: A Comprehensive Approach to Agricultural Support

Key Mechanisms and Benefits of PM-AASHA

Understanding PM-AASHA: A Comprehensive Approach to Agricultural Support

  • 05 Oct, 2024
  • 455

Understanding PM-AASHA: A Comprehensive Approach to Agricultural Support

The Pradhan Mantri Annadata Aay SanraksHan Abhiyan, or PM-AASHA, is a significant initiative by the Indian government aimed at ensuring fair and stable prices for farmers while protecting consumers from market fluctuations. This scheme serves as a protective umbrella that encompasses various mechanisms designed to tackle the challenges faced by the agricultural sector.

Key Provisions and Expansions

Initially launched with three components, PM-AASHA has recently expanded to include four essential elements:

  • Price Support Scheme (PSS): This scheme involves the direct procurement of notified crops like pulses, oilseeds, and copra at their Minimum Support Price (MSP), ensuring that farmers obtain a fair price for their produce.
  • Price Stabilization Fund (PSF): The PSF acts as a buffer against price fluctuations. By maintaining strategic reserves of essential commodities, such as pulses and onions, the government can stabilize prices during periods of scarcity or surplus.
  • Price Deficit Payment Scheme (PDPS): Under this scheme, if the market price of a crop falls below its MSP, the government compensates farmers for the difference, thus protecting them from market risks.
  • Market Intervention Scheme (MIS): The MIS focuses on providing market support for horticultural and perishable commodities, preventing distress sales during gluts by procuring produce at fair prices and facilitating its distribution.

Aims and Objectives

PM-AASHA aims to address a variety of challenges in the agricultural sector, including:

  • Remunerative Prices for Farmers: Ensuring farmers receive a fair and profitable price for their crops, which incentivizes increased production and enhances their livelihoods.
  • Price Stability for Consumers: Protecting consumers from sudden and extreme price fluctuations, particularly for essential food items.
  • Market Efficiency: Encouraging efficient market functioning by discouraging hoarding and speculation, thus promoting fair trade practices.
  • Food Security: Strengthening national food security by ensuring an adequate supply and stable prices of essential commodities.

Potential Benefits

The continuation and expansion of PM-AASHA signify its potential to bring about several positive outcomes:

  • Farmer Empowerment: By providing a safety net through assured MSP and direct income support, the scheme empowers farmers to make informed decisions regarding their crops and investments.
  • Consumer Protection: The price stabilization mechanisms in PM-AASHA help ensure that essential commodities remain affordable for consumers, especially during inflationary periods or supply disruptions.
  • Market Regulation: By curbing hoarding and speculation, the scheme promotes a more transparent and competitive market environment.
  • Agricultural Growth: By incentivizing farmers to increase production and adopt modern agricultural practices, PM-AASHA can contribute to the overall growth and development of the agricultural sector.

Performance and Future Outlook

While comprehensive data on the scheme's performance is not readily available, its continuation and expansion suggest positive results in achieving its objectives. The government's commitment to allocating significant funds to PM-AASHA further indicates confidence in the scheme's potential to transform the agricultural landscape. The addition of the MIS component reflects a proactive approach to addressing emerging challenges and ensuring holistic support for the farming community.

In essence, PM-AASHA represents India's multifaceted approach to tackling the complexities of the agricultural sector. By focusing on both farmer welfare and consumer protection, it strives to create a more resilient and equitable agricultural ecosystem. While challenges remain, the expansion of PM-AASHA signals the government's determination to foster a sustainable and prosperous future for India's farmers and consumers alike.

Frequently Asked Questions (FAQs)

Q1. What is the main purpose of PM-AASHA?
Answer: PM-AASHA aims to ensure fair and stable prices for farmers while protecting consumers from price volatility in the agricultural market.

Q2. How does the Price Support Scheme (PSS) work?
Answer: The PSS involves direct procurement of notified crops at their Minimum Support Price (MSP) to ensure farmers receive fair compensation for their produce.

Q3. What is the significance of the Price Stabilization Fund (PSF)?
Answer: The PSF serves as a buffer against price fluctuations by enabling the government to maintain strategic reserves of essential commodities, stabilizing prices during market imbalances.

Q4. How does the Price Deficit Payment Scheme (PDPS) protect farmers?
Answer: The PDPS compensates farmers when market prices fall below the MSP, thereby shielding them from financial loss due to market risks.

Q5. What role does the Market Intervention Scheme (MIS) play?
Answer: The MIS provides market support for horticultural and perishable commodities, preventing distress sales and ensuring fair pricing in times of surplus.

 

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