Recently, Union Cabinet has converged the Price Support Scheme (PSS) & Price Stabilization Fund (PSF) schemes in PM AASHA to serve the farmers and consumers more efficiently.
Objectives
Salient features
To provide remunerative prices to farmers and to control price volatility of essential commodities for consumers.
Ministry: Ministry of Agriculture & Farmers Welfare.
Type: Central Sector Schemes
Fund allocated: Rs. 35,000 crore during 15th Finance Commission Cycle up to 2025-26.
Background: It’s an umbrella scheme and launched in 2018.
Central Nodal Agencies (CNA): Central Government provide Government Guarantee to lender banks for extending cash credit facilities by CNA like National Agricultural Co-operative Marketing Federation of India Limited (NAFED), National Co-operative Consumer’s Federation of India Limited (NCCF) etc. for undertaking procurement operations at MSP under PSS.
Components:
Price Support scheme (PSS): Procurement of these commodities are undertaken directly from pre-registered farmers at MSP as and when prices fall below MSP.
The procurement of notified pulses, oilseeds & copra at MSP under PSS will be on 25% of national production of these notified crops from 2024-25 season onwards.
However, the ceiling won't apply to Tur, Urad & Masur in 2024-25, as 100% procurement was previously decided for these crops.
It is implemented at the request of the State Government concerned which agrees to exempt the procured commodities of pulses, oilseeds and copra from levy of mandi tax and assist central nodal agencies, in logistic arrangements.
Price Stabilization Fund (PSF): The scheme provides working capital and other incidental expenses for procurement, storage and distribution of the identified agri-horticultural commodities.
Department of Consumer Affairs (DoCA) will procure pulses at market price from pre-registered farmers on eSamridhi portal of NAFED and eSamyukti portal of NCCF when prices exceed MSP.
The interventions under PSF scheme have been undertaken in other crops such as Tomato and in subsidized retail sale of Bharat DaIs, Bharat Atta and Bharat Rice.
Price Deficit Payment Scheme (PDPS): It envisages direct payment of the difference between the MSP and the selling/ modal price to pre-registered farmers selling oilseeds.
Fair Average Quality (FAQ) norms shall be decided/ approved by the DAC for each crop.
In order to encourage the states to come forward for implementation of PDPS as an option for Notified oilseeds, the coverage has been enhanced from existing 25% of state production of oilseeds to 40%.
Enhanced the implementation period from 3 months to 4 months for the benefits of farmers.
The compensation of difference between MSP and Sale/Modal price to be borne by Central Government is limited to 15% of MSP.
Market Intervention Scheme (MIS): MIS entails procurement of agricultural and horticultural commodities which are perishable in nature and for which MSP is not announced, in order to protect growers from distress sales during bumper crops when prices fall below production costs.
Government increased coverage from 20% to 25% of production and added direct differential payment option to farmers' accounts under MIS.
For TOP crops, government will cover transportation and storage costs for NAFED & NCCF operations, ensuring fair prices for farmers and lower consumer prices.
Note: For oilseeds, States/UTs have options to choose either PSS or PDPS in a given procurement season with respect to a particular oilseed crop for the entire State.
e-Samridhi Portal: Since 2017, e-Samridhi has been the cornerstone in NAFED’s pursuit of India’s self-sufficiency in oilseeds and pulses through a nationwide MSP procurement program; symbolizes progress and efficiency
