The Union cabinet on Wednesday has extended the PM-AASHA price support scheme in agriculture till 2025-26 that will involve an outlay of ₹35,000 crore and is meant to provide farmers with better prices and manage price volatility of essential commodities.

The Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) merges the price support scheme (PSS) and price stabilization fund (PSF).

It includes the price deficit payment scheme (PDPS) and market intervention scheme (MIS), designed to ensure that farmers receive minimum support prices (MSP) for their produce.

The government plans to procure 25 per cent of national production for key crops such as pulses, oilseeds and copra under PSS starting from the 2024-25 season.

The procurement rate will remain at 100 per cent for crops such as tur, urad and masur.
The purchases will be conducted through digital platforms, including the eSamridhi and eSamyukti portals, managed by state agencies.

The extension of PSF will help build strategic buffer stocks of pulses and onions, addressing price swings and curbing hoarding.

Meanwhile, the scope of PDPS will be expanded to cover 40 per cent of state oilseed production, offering more farmers protection from price drops.

Additionally, the government will absorb transport and storage costs for key crops such as tomatoes, onions, and potatoes during peak harvests, supporting efforts to control inflation and ensure stable prices across the country.

Fertiliser sop

The government on Wednesday approved a ₹24,474.53-crore subsidy on phosphatic and potassic (P&K) fertilisers for the rabi season (October 2024 to March 2025).

The subsidy would be provided to the fertiliser companies as per approved and notified rates of N (nitrogen), P (phosphorus) and K (potash).

The government is making available 28 grades of P&K fertilisers to farmers at subsidised prices. The subsidy on P&K fertilisers is governed by the NBS (nutrient-based subsidy) scheme with effect from April 1, 2010.

“In view of the recent trends in the international prices of fertilisers and inputs i.e. urea, DAP, MOP and sulphur, the government has decided to approve the NBS rates for rabi 2024 on P&K fertilisers,” an official statement said.

Agriculture minister Shivraj Singh Chouhan said “this subsidy will provide a much-needed relief to our farmers, who have been facing increasing costs due to rising global fertiliser prices.”

The government’s decision to continue the subsidy for the rabi season comes amid concerns about the impact of rising fertiliser prices on farmers’ profitability. The government has also been taking steps to promote the use of organic fertilisers and reduce dependency on chemical fertilisers.

Meanwhile, the government is mulling lifting the ban on export of certain varieties of non-basmati rice, food secretary Sanjeev Chopra said on Wednesday.

The export of non-basmati white rice has been banned since July 20, 2023 to boost domestic supply.