Context
- The PM-AASHA is another program implemented by the Indian government in 2018 which aims to ensure remunerative prices for farmers’ crops.
- It was planned that the scheme will help in maintaining proper price for agricultural produce, alleviating farmer’s suicide and increasing the production rate of agriculture.
Description and Details
PM-AASHA comprises three key components:
- Price Support Scheme (PSS): The purchase of crops at prices starting from Minimum Support Price (MSP).
- Price Deficiency Payment Scheme (PDPS): Bringing a mechanism of transferring payment directly to farmers to help them to cover the difference between MSP and market price.
- Private Procurement and Stockist Scheme (PPSS): Engagement of the private sector in procurement, and preservation of commodities.
Significance
- Farmer Welfare: Maintains correct prices and farmers’ revenues.
- Agricultural Growth: Enhances agricultural yield and output
- Food Security: It helps to ensure the availability of food grains for the nation.
Pros
- Increased Farmer Incomes: Direct benefit transfer to farmers is another technique to enhance farmer’s income through aid payments for social security services such as health and pension.
- Reduced Distress: My guest’s last response was a good safety net against market fluctuations.
- Improved Productivity: Help farmers to practise modern methods of farming
Cons
- Financial Burden: Extra cost expenditure of government
- Implementation Challenges: As you may expect, because of the elaborate procedures of the procurement and payment chain with several stakeholders involved in a bid.
- Market Distortions: Possible effects on the market prices as well as competition
Challenges
- Effective Implementation: To ensure timely procurement and payments are made in the right manner and in the shortest time possible.
- Market Volatility: But more importantly, the aspect of pricing volatility and risk.
- Scaling Up: To increase the scope of the scheme to more crops, and to more farmers.
Additions to PM-AASHA
The Centre has announced plans to continue PM-AASHA with additions, including:
- Expansion to more crops: Other crops that include pulses and oilseeds have also been covered.
- Increased funding: More appropriate implementation of budget for the schemes
- Technology integration: Use of appropriate technology solutions on procurement and payment.
Conclusion and Way Forward
PM-AASHA promises to alter Indian agriculture and empower farmers for fixing fair prices and income volatility. These changes to the scheme will also add to the enhancement of its reach. To ensure long-term success:
- Streamline Implementation: Choose, make, purchase, pay
- Enhance Farmer Awareness: Officials should ensure farmers take time and learn the various benefits indicated in the scheme as well as the process to follow.
- Monitor Market Dynamics: Therefore, market trends must be evaluated on a regular basis and schemes should also be modified based on these trends.
By focusing on the weaknesses as well as capitalising on the strength of PM-AASHA the government of India can promote agriculture, uplift the farmers and address the problem of food insecurity.
Source: Press Information Bureau