Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)—2018

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Policy Update
Tanmyi Anthwal

India’s agriculture sector has long faced the challenge of ensuring fair prices for farmers while keeping essential food affordable for consumers. For decades, the Minimum Support Price (MSP) system served as a safety net, but its coverage was mostly limited to rice and wheat. To address this, the Government of India launched the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) in September 2018 to provide price support for farmers growing pulses, oilseeds, and crops important for nutritional security and reducing import dependence.

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In September 2024, the Union Cabinet approved PM-AASHA until 2025-26 under the 15th Finance Commission. The scheme has a financial outlay of ₹35,000 crore. The government also renewed a ₹45,000 crore procurement guarantee for the Price Support Scheme (PSS). These steps show a strong commitment to protect farmers from price fluctuations and ensure stable incomes for millions of small and marginal cultivators.

Aims and Rationale

PM-AASHA was created to help farmers who face sharp post-harvest price declines when crops are harvested. The scheme aims to:

  • Ensure farmers receive remunerative prices not lower than the MSP.
  • Protect income security for cultivators of pulses, oilseeds, and copra.
  • Stabilize market prices through buffer management and timely interventions.
  • Promote self-sufficiency and reduce India’s import dependence on pulses and edible oil.

The scheme complements existing procurement systems while introducing innovative, market-linked mechanisms that adapt to diverse state capacities and agricultural conditions.

Functioning

PM-AASHA has four main components that states can select based on their local market needs and crops: the Price Support Scheme (PSS) for physical procurement, the Price Deficiency Payment Scheme (PDPS) for direct payments to farmers when market prices fall below MSP, the Private Procurement and Stockist Scheme (PPSS) for private sector procurement, and the establishment of an effective buffer stock mechanism.

ComponentKey Features (2024–25)Implementing Agency / Coverage
Price Support Scheme (PSS)Physical procurement of notified pulses, oilseeds, and copra at MSP. Procurement ceiling: 25% of national production (except for Tur, Urad, and Masur, which have 100% procurement for 2024-25).NAFED and NCCF, with full central funding for procurement costs and losses.
Price Deficit Payment Scheme (PDPS)Farmers selling oilseeds below MSP in notified mandis receive direct payments covering the price gap. Coverage expanded to 40% of state production, and the payment window was extended to four months.State governments and APMCs, with central support capped at 15% of MSP.
Price Stabilization Fund (PSF)Maintains buffer stocks of pulses and onions to prevent volatility. Stocks are released to moderate retail prices; this also supports subsidized distribution of Bharat Dals, Bharat Atta, and Bharat Rice.Department of Consumer Affairs.
Market Intervention Scheme (MIS)Targets perishable horticultural crops. Coverage increased to 25% of production, with a new provision for direct differential payments. For TOP crops (tomato, onion, and potato), the government bears transport and storage costs.NAFED, NCCF, and State Governments (cost-sharing 50:50).

These four components together create a comprehensive price safety net, balancing government procurement, market-based compensation, private partner involvement, and price stabilization through buffer stocks.

Implementation

The performance of PM-AASHA has been inconsistent, but it is making progress. States like Madhya Pradesh, Maharashtra, and Karnataka, which have strong cooperative networks and digital infrastructure, have done well in implementation. In contrast, other states have faced challenges due to logistical and institutional issues.

For the Kharif 2024-25 season, the Centre approved the procurement of Tur (Arhar) in nine states, aiming for 13.22 lakh metric tonnes (LMT). By mid-February 2025, 0.15 LMT had been procured in Andhra Pradesh, Karnataka, Maharashtra, and Telangana, benefiting around 12,000 farmers. Even though this is less than 2% of the target, procurement operations are still ongoing.

This shortfall shows clear problems like delayed registration, too few procurement centers, and low awareness among farmers. However, the government’s move to buy 100% of Tur, Urad, and Masur in 2024-25 is a big step toward making India self-sufficient in pulses.

The Price Stabilization Fund (PSF) continues to be essential in managing retail inflation. It keeps a buffer stock of about 25 LMT of pulses and intervenes in onion markets to address supply issues. Subsidized Bharat Dals have reached low-income consumers through retail outlets and cooperatives, helping to support both affordability and nutritional security.

Financial Commitment

The continuation of PM-AASHA shows a strong financial commitment from the Union Government. Key financial provisions include:  

  • ₹35,000 crore allocation under the 15th Finance Commission (2021-26).  
  • ₹45,000 crore government guarantee for PSS procurement operations.  
  • 15% MSP cap for central compensation under PDPS.  
  • 25% procurement ceiling for most crops, except 100% for select pulses.  

These measures provide adequate funding for widespread procurement and direct payments across states.

Impact

For Farmers  

  1. Reduced distress sales: Farmers are guaranteed a minimum return, even in weak markets.  
  2. Encouragement for diversification: Stable price support has led farmers to shift from rice and wheat to pulses and oilseeds.  
  3. Improved creditworthiness: With steady incomes, farmers can better access institutional loans.  

The government’s total procurement commitment for Tur, Urad, and Masur helps reduce India’s dependence on importing 2 to 3 million tonnes of pulses every year. Growing enough of these crops at home can save the country a lot of money and make local supply chains stronger and more reliable.

For Consumers  

The Price Stabilization Fund has helped prevent big swings in food prices, especially when supplies are low. Releasing buffer stocks and programs like Bharat Dals and Bharat Atta have kept essential staples affordable for consumers.

Keeping onion prices steady is still tough because they spoil quickly, and supply varies by region. Even with buffer stocks, prices sometimes spike, showing a need for better storage and transport.

Key Challenges

  1. Delayed Procurement and Payments: In some states, procurement starts weeks after harvest. This forces farmers to sell below the minimum support price (MSP).  
  2. Limited Awareness and Registration: Many eligible farmers do not know about the registration requirements for the e-Samridhi (NAFED) and e-Samyukti (NCCF) portals.  
  3. Infrastructure Deficits: Storage, grading, and transportation facilities are still lacking, especially in remote areas.  
  4. Underutilization of PDPS: Even though it is efficient, states are not willing to adopt the PDPS. They favour traditional physical procurement models instead.  
  5. Quality and Grading Issues: Disputes during procurement arise from inconsistent grading standards, which harm farmers’ trust.  

The Way Forward

To make PM-AASHA a truly transformative tool for farmer welfare and price stability, the following strategic steps are essential:

  • Strengthen Implementation: Use real-time digital dashboards for procurement tracking. Ensure timely fund release to states.
  • Improve Awareness: Launch multilingual campaigns through Farmer-Producer Organizations (FPOs), Krishi Vigyan Kendras, and local panchayats.
  • Invest in Infrastructure: Build decentralized procurement centers, grading labs, and modern storage units in high-production areas.
  • Revitalize PDPS: Introduce pilot programs in oilseed-producing states like Gujarat and Rajasthan to show PDPS’s efficiency.

Conclusion

PM-AASHA is more than a government program. It’s a lifeline for farmers, helping them earn a fair living and support their families. By offering direct payments, market help, and stable prices, it goes beyond the usual ways of protecting farmers’ hard work. The government’s focus on key pulses shows a real effort to safeguard livelihoods and keep food accessible. The true success of the scheme will be seen in farmers feeling secure and confident, and in families having a steady, affordable supply of healthy food.

References 

About the Contributor: Tanmyi Anthwal is a Research Intern at IMPRI

Acknowledgement: The author extends her sincere gratitude to the IMPRI team and Ms. Aasthaba Jadeja for her invaluable guidance throughout the process.

Disclaimer: All views expressed in the article belong solely to the author and not
necessarily to the organisation.

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