Centre pushes to check distress sale, boost MSP

In a step aimed at strengthening the minimum support price (MSP) mechanism for pulses and oilseed-growing farmers, the government on Wednesday approved the expansion of the Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA).

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The decision, taken at a meeting of the Cabinet, comes as farmers continue to protest, seeking a legal guarantee for the MSP.

Information and Broadcasting Minister Ashwini Vaishnaw told reporters after the Cabinet meeting that the decision to expand the scope of PM-AASHA had been taken to protect the income of farmers and to procure excess quantity in case there was a fall in the price due to overproduction.

To pay farmers, cover shortfall

• The move is aimed at encouraging pulses and oilseed farmers; the scheme has a price stabilisation mechanism
• If there is a gap between MSP and market price, difference will be met by the govt
• If the price falls due to overproduction, the govt will procure a huge quantity of it

An amount of Rs 35,000 crore had been earmarked for this programme, he said.

“The decision has been taken to encourage pulses and oilseed farmers. There is a price stabilisation mechanism in this scheme. If there is a gap between the MSP and the market price, the difference will be met by the government. Besides, if the price of a crop falls due to overproduction, there is a mechanism where the government will procure a huge quantity of that crop and create a buffer stock,” the minister said.

The main objective was to become self-sufficient in the production of oilseeds and pulses, Vaishnaw said.

To protect farmers from distress sale during the peak harvesting time, the Cabinet approved the expansion of the scope of PM-AASHA to include four new components under the scheme.

The components of PM-AASHA will now include the Integrated Price Support Scheme, the Price Stabilisation Fund, the Price Deficit Payment Scheme and the Market Intervention Scheme.

The government has converged the Integrated Price Support Scheme and the Price Stabilisation Fund in PM-AASHA to serve the farmers and consumers more efficiently.

The integrated scheme of PM-AASHA would bring in more effectiveness in the implementation, which would not only help provide remunerative prices to the farmers for their produce but also control the price volatility of essential commodities by ensuring their availability at affordable prices to the consumers, the minister said.

The procurement of notified pulses, oilseeds and copra at the MSP under the price support scheme will be 25 per cent of the national production of these notified crops from the 2024-25 season onwards, which will enable states to procure more quantity of these crops at the MSP from farmers for ensuring remunerative prices and preventing distress sale.

However, this ceiling will not be applicable in the case of tur, urad and masur for the 2024-25 season as there will be 100 per cent procurement of these items during this period as decided earlier.

In order to encourage states to come forward for the implementation of the Price Deficit Payment Scheme 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. The implementation period has also been enhanced from three to four months for the benefit of farmers.

The extension of the implementation of the Market Intervention Scheme with changes will provide remunerative prices to farmers growing perishable horticulture crops.

The government has increased the coverage from 20 per cent to 25 per cent of the production and has added a new option of making differential payment directly into the farmers’ account instead of physical procurement under the scheme.

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