PM-AASHA will now have the components of Price Support Scheme (PSS), Price Stabilisation Fund (PSF), Price Deficit Payment Scheme (POPS) and Market Intervention Scheme (MIS).
Credit: PTI Photo
New Delhi: The Union Cabinet on Wednesday took two pro-farmer decisions, announcing an investment of over Rs 59,000 crore that included providing better prices for farm produce.
The two decision are: the continuation of the PM-AASHA (Pradhan Mantri Annadata Aay SanraksHan Abhiyan) scheme with an outlay of Rs 35,000 crore, and Rs 24,474.53 crore subsidy on phosphatic and potassic (P&K) fertilisers for the rabi season of 2024-25.
"The government approved the continuation of schemes of Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) to provide remunerative prices to farmers and to control price volatility of essential commodities for consumers," an official statement said.
The total financial outgo will be Rs 35,000 crore during the 15th Finance Commission Cycle up to 2025-26, it added.
The government also converged the Price Support Scheme (PSS) and Price Stabilization Fund (PSF) schemes in PM-AASHA to serve the farmers and consumers more efficiently.
Under the PSS, the procurement of notified pulses, oilseeds and copra at MSP will be 25 per cent of national production from the 2024-25 season onwards. This would enable states to procure more of these crops at MSP from farmers to prevent distress sale.
The Centre also renewed and enhanced the existing government guarantee to Rs 45,000 crore for procurement of notified pulses, oilseeds and copra at MSP.
This will help in more procurement of pulses, oilseeds & copra whenever prices fall below MSP in the market.
In order to encourage the states to come forward for implementation of Price Deficit Payment Scheme (PDPS) as an option for notified oilseeds, the coverage has been enhanced from the existing 25 per cent of state production of oilseeds to 40 per cent, while the implementation period has also been extended from 3 months to 4 months for the benefit of farmers.
The cabinet also approved Rs 24,474.53 crore subsidy on phosphatic and potassic (P&K) fertilisers for the rabi season of 2024-25 to ensure supply of crop nutrients to farmers at subsidised and affordable rates.
"The tentative budgetary requirement for rabi season 2024 would be approximately Rs 24,475.53 crore," an official statement said.
The government is making available 28 grades of P&K fertilisers to farmers at subsidized prices through fertiliser manufacturers/importers.
The subsidy would be provided to fertiliser companies as per approved and notified rates of N (nitrogen), P (phosphorus) and K (potash) so that fertilisers are made available to farmers at affordable prices, it added.