Lok Sabha Question No. 4869 (UNSTARRED), answered on 2019-07-23
Subject: PM AASHA Scheme
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Lavu Sri Krishna Devarayalu

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO. 4869

TO BE ANSWERED ON THE 23 RD  JULY, 2019

## PM AASHA SCHEME

4869.  SHRI  LAVU SRI KRISHNA DEVARAYALU:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state :

- (a) the aims and objectives of PM AASHA scheme;
- (b) the extent to which this scheme helps in procurement;
- (c) whether  it  is  true  that  private  sector  players  are  also  being  engaged  in  agriculture procurement process;
- (d) if so, the details thereof and the reasons therefor; and
- (e) the details of the mechanism proposed under PM AASHA?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

(a) & (b): The aims and objectives of Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) are to ensure Minimum Support Price (MSP) to farmers for their produce and that  they  do  not  have  to  resort  to  distress  sale.  Provision  of  online  registration,  timely payments to farmers strictly through Real Time Gross Settlement (RTGS)/National Electronic Fund Transfer (NEFT) and active association of State Governments/Union Territories under this scheme ensure the implementation/procurement operations in a smooth and transparent manner.

(c) & (d): Yes,  through  the  pilot  scheme  of  Private  Procurement  &  Stockist  Scheme (PPSS) under umbrella scheme of PM-AASHA, there is a provision to intervene the market by  private  agencies  empanelled  with  State  Governments/Union  Territories  by  way  of procurement of  notified oilseeds in the selected districts/APMC(s) of the district when prices of these produce fall below the MSP. The reason behind this, is to serve the cause of farmers welfare  by  ensuring  the  delivery  of  MSP  to  farmers  through  intervention  in  regions  where there is production surplus, but there exist no effective demand. In such areas, private sector led procurement operations will create a demand and possibly influence the market positively alongwith promotion of warehouses and processing mills.

(e): The umbrella scheme of PM-AASHA comprises of Price Support Scheme (PSS), Price Deficiency  Payment  Scheme  (PDPS),  pilot  of  Private  Procurement  and  Stockist  Scheme (PPSS) and existing schemes of Department of Food & Public Distribution and of Ministry of Textiles.  Under  this  scheme,  Government  agencies  procure  the  produce  of  Fair  Average Quality (FAQ) at MSP from farmers as and when prices fall below the MSP and proposals are  received  from  State  Governments/Union  Territories.  The  payments  to  the  farmers  are made strictly through Real Time Gross Settlement (RTGS)/National Electronic Fund Transfer (NEFT) and account payee cheque by the procuring agencies within three days of purchase of  their  produce.  For  Oilseeds,  State/UTs  have  the  option  to  implement  Price  Deficiency Payment  Scheme  (PDPS)  where  difference  between  MSP/Model  price  and  actual  selling price  in  notified  mandis  is  paid  directly  to  the  farmers  and  no  physical  procurement  is required to be done by Government. However, if farmers get better price in comparison to MSP, they are free to sell their produce in open market.

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