Question : PM AASHA Scheme

(a) the aims and objectives of PM AASHA scheme;

(b) the extent to which this scheme helps in procurement;

(c) whether it is true that private sector players are also being engaged in agriculture procurement process;

(d) if so, the details thereof and the reasons therefor; and

(e) the details of the mechanism proposed under PM AASHA?

Answer given by the minister

MINISTER OF AGRICULTURE AND FARMERS WELFARE

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(a) & (b): The aims and objectives of Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) are to ensure Minimum Support Price (MSP) to farmers for their produce and that they do not have to resort to distress sale. Provision of online registration, timely payments to farmers strictly through Real Time Gross Settlement (RTGS)/National Electronic Fund Transfer (NEFT) and active association of State Governments/Union Territories under this scheme ensure the implementation/procurement operations in a smooth and transparent manner.
(c) & (d): Yes, through the pilot scheme of Private Procurement & Stockist Scheme (PPSS) under umbrella scheme of PM-AASHA, there is a provision to intervene the market by private agencies empanelled with State Governments/Union Territories by way of procurement of notified oilseeds in the selected districts/APMC(s) of the district when prices of these produce fall below the MSP. The reason behind this, is to serve the cause of farmers welfare by ensuring the delivery of MSP to farmers through intervention in regions where there is production surplus, but there exist no effective demand. In such areas, private sector led procurement operations will create a demand and possibly influence the market positively alongwith promotion of warehouses and processing mills.
Contdā€¦.2/-

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(e): The umbrella scheme of PM-AASHA comprises of Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS), pilot of Private Procurement and Stockist Scheme (PPSS) and existing schemes of Department of Food & Public Distribution and of Ministry of Textiles. Under this scheme, Government agencies procure the produce of Fair Average Quality (FAQ) at MSP from farmers as and when prices fall below the MSP and proposals are received from State Governments/Union Territories. The payments to the farmers are made strictly through Real Time Gross Settlement (RTGS)/National Electronic Fund Transfer (NEFT) and account payee cheque by the procuring agencies within three days of purchase of their produce. For Oilseeds, State/UTs have the option to implement Price Deficiency Payment Scheme (PDPS) where difference between MSP/Model price and actual selling price in notified mandis is paid directly to the farmers and no physical procurement is required to be done by Government. However, if farmers get better price in comparison to MSP, they are free to sell their produce in open market.
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