Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM AASHA) is a scheme that aims at ensuring fair price for farmers and their produce.

By strengthening the procurement process, the PM-AASHA scheme will improve the income of the farmers to a greater extent.

This article will give details about the PM-AASHA Scheme within the context of the IAS Exam.

Components of the PM-AASHA Scheme

The PM AASHA Scheme as the following components

1. Price Support Scheme (PSS): Through the Price Support Scheme procurement of pulses, oilseeds will be carried out by the Central Nodal Agencies with support from state governments. The PSS will be set up by the Food Corporation of India along with NAFED and any expenses incurred will be borne by the Central Government.

2. Price Deficiency payment Scheme (PDPS): In this scheme, all oilseed notified for SP will be covered. Direct payment of the difference between Minimum Support Price (MSP) and the selling price will be made to the registered farmers. All payments will be made to the registered bank account of the farmer. In other words, no procurement will take place but rather the difference between MSP and selling price will be paid to the farmers.

3. Pilot of Private Procurement & Stockist Scheme (PPPS): As per the Pilot of Private Procurement & Stockist Scheme (PPPS) the private sector will take part in the procurement operations. The states will have an option to carry out the scheme on pilot basis in selected APMCs with involvement from the private sector.

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Challenges for the PM-AASHA Scheme

Like all government schemes, the PM-AASHA scheme has its own share of challenges. They are as follows:

  • It does not strengthen the procurement mechanism infrastructure in the country which is robust for wheat and rice.
  • A 2017 study by K.S. Aditya found that only 24% households were aware of the MSP in place. Further studies found that the MSPs were only functioning in a few states.
  • WIth the exception of wheat and rice, the quantity of produce procured by designated state agencies was limited, leading to low awareness.
  • As per the evaluation by the NITI Aayog, the procurement facilities in several states were found to be ‘insufficient’ in the long run.


  • Procurement centres must be improved especially with regards to dying yards, weighing bridges etc.
  • More godown and storage facilities must be constructed in order to reduce wastage
  • To save transportations costs, the procurement centres must be in the villages itself
  • The NITI Aayog recommends that infrastructure for procurement is crucial for the success of any farmer’s oriented welfare scheme.

To know more about other Government Schemes, visit the linked article.

For more information about upcoming Government Exams, visit the linked article. More exam-related preparation materials will be found through the links given below:

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