PM-AASHA: Structural Components of Farmer Remuneration & Buffer Stocking
- Price Support Scheme (PSS): Physical procurement of pulses, oilseeds, and copra at Minimum Support Price (MSP) by central nodal agencies (NAFED, FCI) when wholesale market prices dip below MSP during peak harvest.
- Price Deficiency Payment Scheme (PDPS): Direct cash transfer into farmers' verified Aadhaar-linked bank accounts covering the difference between MSP and the actual modal market sale price, eliminating physical storage costs.
- Price Stabilization Fund (PSF): Strategic procurement and maintenance of buffer stocks for sensitive horticultural essentials (pulses, onions, and potatoes) to tame consumer inflation.
- Market Intervention Scheme (MIS): Implemented on state request for perishable agricultural and horticultural crops not covered under mandatory MSP frameworks.
- Institutional Governance: Launched in 2018 under the Ministry of Agriculture & Farmers Welfare, integrating pre-existing procurement mechanisms into a unified umbrella scheme.
- PDPS Inspiration: Modeled on Madhya Pradesh's pioneering Bhavantar Bhugtan Yojana.
- CACP Mandate: MSP is recommended by the Commission for Agricultural Costs and Prices (CACP) based on the A2+FL and C2 cost formulas for 22 mandated crops plus Fair and Remunerative Price (FRP) for sugarcane.
Under the 'Price Deficiency Payment Scheme' (PDPS) component of PM-AASHA, how is price support extended to registered agricultural producers?
Explanation: PDPS involves zero physical procurement of produce; instead, the price gap between the MSP and the registered market sale price is directly credited to the farmer's bank account.