PM AASHA SCHEME - CAN IT HELP OUR FARMERS ?

WHAT JUST HAPPENED?

The Union Cabinet recently approved an umbrella scheme for farmers called PM-AASHA launched on 12th September 2018


Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)

This is an umbrella scheme(i.e. a big scheme - under which there are many small schemes)



In the Union Budget 2018, The government has already increased the MSP(Minimum Support Price)  of Kharif Crops by following the principle of 1.5 times the cost of production.

MSP System is not new it's from decades, But in Union Budget 2018 - There is change in MSP price.

But these kind of schemes actually not work on ground level.

In a Survey conducted by 'National Sample Survey Office (NSSO) in the 70th round in 2013, only 6% of farmers are able to sell their products at MSP.

WHY ONLY 6% FARMERS ABLE TO AVAIL MSP FACILITY ?

There are many reasons:

• Main reason is 'Government does not have any storage facility', lack of personnel to maintain. [ Lack of Infrastructure ]
  
• Delay of Payment.
  
• Distance to procurement centers [ i.e. the Centers where Govt. purchase the products from Farmers at MSP is not near they are very far around 100-200 KM) and there could be chances that product may rotten, Hence Farmers sell their products nearby at below MSP price.

According to 2016 NITI Ayog Evaluation report 79% Farmers responded with NO when asked if they satisfied with MSP regime.

WHY PM-AASHA SCHEME ?

Due to above mentioned challenges with MSP scheme, Government came with PM-AASHA scheme which aimed at ensuring that farmers get remunerative prices for their products as announced in the Union Budget 2018.

COMPONENTS IN PM-AASHA

PM-AASHA is a mix of sub-schemes and state can choose out of them.
There are three components under PM-AASHA -

• Price Support Scheme (PSS) - This is not new concept, It's in action from so many years. But here government focuses on prices of pulses, oil-seeds and copra (Kernel of coconut). It become more financially strong now.
  
  The  difference is Earlier in this scheme only NAFED involve, now addition with NAFED, FCI (Food Corporation of India ) will take up PSS operations in State and Districts. Now Government told to both NAFED and FCI to purchase products from farmers.
  
• Price Deficiency Payment Scheme (PDPS) - The scheme is on line of MP government's Bhavantar Bhugtan yojana, but will protect oilseeds farmers only.
  
  In this there is no Physical Procurement, that here Government is not purchasing anything from farmers.
  
  Example: Farmers made some products of Rs 10000 and as per 1.5 times formula, he's expected 15000 for that product. He sold it for 12000 in Market. So he go to government with a proper bill and Government will give him rest 3000 (i.e. difference)
  Under PDPD, the govt will pay to growers the difference between the MSP and monthly average price of oilseeds quoted in wholesale market. The price difference will be made to pre-registered farmers in their bank accounts selling the produce in the notified market yard through a transparent auction process.
  
• Pilot of Private Procurement and Stockist Scheme (PPPS) - Besides above schemes, the states are given an option to rope in private players for oilseeds procurement on a pilot basis so that the ambit of private participation could be increased.
  
  The selected private agency shall procure the commodity at MSP in notified market during the notified period from the registered farmers in consonance with the PPPS guidelines, whenever the prices in the market fall below the notified MSP and whenever authorized by the state/UT government to enter the market.
  
  This PPPS is a pilot scheme, and in this it's upto State Government, whether they involve Private sectors so that they purchase farmers products at MSP or Not. State will try this scheme in some districts.

The center has made the provision of Rs. 16,550 Crore as a bank guarantee for central agencies to directly procure from farmers under PSS, while the budgetary allocation for PM-AASHA has been raised to Rs. 15,053 Crore. 


WAY FORWARD:

The dream of doubling the farmer's income by 2022 can only be realized only if farmers get fair prices of their produce.

CONCLUSION

Whether all these schemes sort farmers problems?

Answer is NO
 
Because ground level issue not addressed i.e. storage facility. The step is just to make the existing scheme more attractive. This is not a revolutionary scheme.

The NITI Ayog also recommended that steps be taken to improve "facilities at procurement centers , such as drying yards , weighing bridges, etc should be provided to farmers.

More Godowns should be setup and maintained properly for better storage and reduction of waste.

For more information, you can access below links:

https://indianexpress.com/article/cities/chandigarh/pm-aasha-will-benefit-private-players-farmer-groups-5359411/

https://www.thehindubusinessline.com/opinion/columns/slate/all-you-wanted-to-know-about-pm-aasha/article24969663.ece?homepage=true

Above Information is as per data available in news till the date when I am posting this. For Other Topics visit - http://learn2ogether.blogspot.com