PM-AASHA schemes to continue with additions: Centre

News Analysis

Context

The Union Cabinet's recent approval to continue the Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) schemes marks a significant step in India's agricultural policy aimed at supporting farmers and stabilizing the prices of essential commodities. This analysis outlines the key components, objectives, and implications of the PM-AASHA schemes, as well as the related subsidy measures for fertilizers.

Introduction

The PM-AASHA initiative was introduced to provide a safety net for farmers by ensuring they receive remunerative prices for their produce. The continuation of these schemes reflects the government's commitment to address the challenges faced by farmers, including price volatility and access to affordable fertilizers. By converging various schemes under PM-AASHA, the government aims to create a more streamlined approach to agricultural support.

Key Components of PM-AASHA

1. Price Support Scheme (PSS)

Objective: The PSS aims to provide a minimum support price (MSP) to farmers for certain crops, ensuring they receive fair compensation for their produce.
Integration: This scheme has now been integrated into PM-AASHA, which enhances its reach and effectiveness.

2. Price Stabilisation Fund (PSF)

Objective: The PSF is designed to stabilize the prices of essential agricultural commodities, particularly pulses and onions, by maintaining strategic buffer stocks.
Functionality: The PSF will discourage hoarding and speculation, thus protecting consumers from extreme price volatility.

3. Price Deficit Payment Scheme (PDPS)

Objective: The PDPS ensures that farmers receive compensation when market prices fall below the MSP, providing an additional layer of financial security.
Benefits: This scheme helps maintain farmer incomes during times of market fluctuation.

4. Market Intervention Scheme (MIS)

Objective: The MIS is intended to intervene in agricultural markets during distress situations to stabilize prices, ensuring that farmers do not suffer losses.
Implementation: By implementing the MIS, the government can actively manage market conditions to benefit farmers.

Fertilizer Subsidy Measures

Nutrient Based Subsidy (NBS)

Focus: The government has fixed the NBS rates for phosphatic and potassic (P and K) fertilizers for the upcoming rabi season.
Financial Allocation: The budgetary requirement for this subsidy is set at ₹24,475.53 crore, aimed at ensuring the availability of fertilizers at reasonable prices for farmers.

Impact of Global Fertilizer Prices

Rationalization: The subsidy rates have been rationalized in light of recent trends in international fertilizer prices, ensuring that the subsidy remains effective and sustainable.
Affordability: This measure is critical to maintaining affordability for farmers, especially given the rising costs of agricultural inputs.

Implications of PM-AASHA

1. Support for Farmers: The continuation of PM-AASHA schemes provides a safety net for farmers, helping them cope with fluctuations in market prices and ensuring stable incomes.

2. Consumer Protection: By stabilizing prices of essential commodities, the PM-AASHA schemes also aim to protect consumers from price spikes, contributing to food security.

3. Promotion of Agricultural Productivity: By ensuring access to affordable fertilizers, the government encourages farmers to increase productivity, potentially leading to greater agricultural output.

4. Strengthening of Agricultural Infrastructure: The integration of multiple schemes under PM-AASHA may lead to better implementation and monitoring, enhancing the overall agricultural infrastructure.

5. Rural Economic Stability: The initiatives are likely to bolster rural economies by increasing the purchasing power of farmers, which can lead to improved living standards in rural areas.

Conclusion

The continuation and expansion of the PM-AASHA schemes reflect the Indian government's proactive approach to addressing the challenges faced by the agricultural sector. By ensuring remunerative prices, stabilizing commodity prices, and providing essential subsidies for fertilizers, these initiatives play a crucial role in promoting the welfare of farmers and enhancing food security in the country. As India navigates complex agricultural challenges, these measures are expected to strengthen the backbone of the nation's economy.

Conceptual MCQs

Question 1

What is the primary objective of the PM-AASHA schemes?

A) To increase agricultural exports
B) To provide remunerative prices to farmers
C) To improve irrigation facilities
D) To promote organic farming

Answer: B) To provide remunerative prices to farmers
Explanation: The PM-AASHA schemes are designed to ensure that farmers receive fair compensation for their produce and manage price volatility in essential commodities.

Question 2

Which of the following components has been integrated into the PM-AASHA schemes?

A) National Agricultural Insurance Scheme
B) Price Support Scheme (PSS)
C) Pradhan Mantri Kisan Samman Nidhi
D) Soil Health Card Scheme

Answer: B) Price Support Scheme (PSS)
Explanation: The PM-AASHA schemes now include components like the Price Support Scheme, Price Stabilisation Fund, Price Deficit Payment Scheme, and Market Intervention Scheme.

Question 3

What is the budgetary requirement for the Nutrient Based Subsidy (NBS) for the upcoming rabi season?

A) ₹35,000 crore
B) ₹24,475.53 crore
C) ₹11,170 crore
D) ₹9,023 crore

Answer: B) ₹24,475.53 crore
Explanation: The tentative budgetary requirement for the Nutrient Based Subsidy (NBS) on phosphatic and potassic fertilizers for the rabi season is ₹24,475.53 crore.

Question 4

How does the Price Stabilisation Fund (PSF) aim to benefit consumers?

A) By increasing the prices of essential commodities
B) By maintaining strategic buffer stocks of agricultural commodities
C) By subsidizing agricultural machinery
D) By promoting crop insurance schemes

Answer: B) By maintaining strategic buffer stocks of agricultural commodities
Explanation: The PSF is designed to stabilize prices of essential agricultural commodities by maintaining buffer stocks, which helps in protecting consumers from extreme price volatility.

Question 5

Which of the following schemes provides compensation to farmers when market prices fall below the minimum support price (MSP)?

A) Price Support Scheme (PSS)
B) Price Deficit Payment Scheme (PDPS)
C) Market Intervention Scheme (MIS)
D) Soil Health Card Scheme

Answer: B) Price Deficit Payment Scheme (PDPS)
Explanation: The PDPS ensures that farmers receive compensation when market prices fall below the MSP, thus providing them financial security during market fluctuations.