PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan): Components and Facts

Last updated: 2026-11-13 · MockMentor

Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) was launched on 12 September 2018 to make sure farmers actually get the Minimum Support Price (MSP) for their crops, especially pulses, oilseeds and copra. Since September 2024 it is an integrated umbrella scheme with four components.

In one line: the toolkit the Government uses to protect farm prices when market rates fall below MSP, through buying, paying the price gap, or holding buffer stocks.

At a glance

Item Details
Launched 12 September 2018
Ministry Agriculture and Farmers Welfare
MSP formula At least 1.5 times the cost of production (A2+FL), from Budget 2018
Components PSS, PDPS, PSF, MIS (plus a private procurement pilot)

The components

Component How it works
Price Support Scheme (PSS) NAFED and NCCF buy pulses, oilseeds and copra at MSP when market prices fall below it; capped at 25% of national production per season
Price Deficiency Payment Scheme (PDPS) For oilseeds: the Centre pays farmers the gap between MSP and the market price, up to 15% of MSP, without buying the crop; covers 40% of a State's oilseed output
Price Stabilisation Fund (PSF) Buffer stocks of tur, urad, chana, moong, masur and onion, released in lean seasons; also behind Bharat Dal, Bharat Atta and Bharat Rice
Market Intervention Scheme (MIS) For perishable horticulture crops; covers 25% of production, with an option of direct price-gap payment

A Private Procurement and Stockist Scheme for oilseeds is also allowed as a pilot.

MSP crops

The Commission for Agricultural Costs and Prices (CACP) recommends MSP for 22 mandated crops (7 cereals, 5 pulses, 7 oilseeds and 3 commercial crops), plus the Fair and Remunerative Price for sugarcane.

Facts to remember

  • Procurement under PSS is done by NAFED and NCCF.
  • PSF and MIS were brought under PM-AASHA in September 2024.
  • Cereals are bought by FCI and State agencies, cotton by CCI and jute by JCI, outside PM-AASHA.

Possible exam questions

  1. Is a legal guarantee of MSP practical? Discuss with reference to PM-AASHA.
  2. Compare physical procurement with price deficiency payments as tools of price support.

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