In News:

• The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the continuation of the PM-AASHA scheme to provide remunerative prices to farmers and control price volatility of essential commodities for consumers.
• Total Financial Outlay: ?35,000 crore during the 15th Finance Commission Cycle, up to 2025-26.

Scheme Integration

• The government has merged the Price Support Scheme (PSS) and Price Stabilization Fund (PSF) into PM-AASHA to enhance efficiency.
• Components of PM-AASHA:
  • Price Support Scheme (PSS)
  • Price Stabilization Fund (PSF)
  • Price Deficit Payment Scheme (PDPS)
  • Market Intervention Scheme (MIS)

Procurement Details

• MSP Procurement: Starting from the 2024-25 season, procurement of notified pulses, oilseeds, and copra at Minimum Support Price (MSP) will be on 25% of national production.
• Exceptions for 2024-25: 100% procurement of Tur, Urad, and Masur will be implemented.
• Government Guarantee: The existing government guarantee for procurement has been enhanced to ?45,000 crore.

Consumer Protection Measures

• The extension of the PSF scheme will help protect consumers from extreme price volatility by maintaining strategic buffer stocks of pulses and onions.
• Procurement of pulses at market prices will be handled by the Department of Consumer Affairs (DoCA) when prices exceed MSP.

Enhanced State Participation

• PDPS Coverage: The coverage for the Price Deficit Payment Scheme for notified oilseeds has been increased from 25% to 40% of state production.
• Implementation Period: Extended from 3 months to 4 months, with compensation limited to 15% of MSP.

Market Intervention Scheme (MIS) Adjustments

• The MIS has been extended to provide remunerative prices for perishable horticultural crops.
• Coverage for MIS has increased from 20% to 25% of production, with an option for direct differential payments to farmers.
• For TOP (Tomato, Onion, Potato) crops, the government will cover transportation and storage costs to ensure price stability.