Backgrounder: PM-AASHA for MSP price support
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- Prelims 2020Consider the following statements: In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any…Solve with answer →
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A PIB Backgrounder of 21 August 2026 explains PM-AASHA, launched in September 2018 as the umbrella for MSP-based price support. It has four parts: the Price Support Scheme, the Price Stabilisation Fund, the Price Deficiency Payment Scheme and the Market Intervention Scheme. Its budget rose to ₹7,200 crore in 2026-27, from ₹5437.99 crore spent in 2024-25.
- Launched
- September 2018
- Full name
- Pradhan Mantri Annadata Aay Sanrakshan Abhiyan
- Components
- PSS, PSF, PDPS, MIS
- Budget 2026–27
- ₹7,200 crore
- Agencies
- NAFED and NCCF
- PSS limit
- 25% of State production; Tur, Urad, Masur up to 100%
PM-AASHA: what happened?
MSP is announced for many crops, but it helps a farmer only if someone actually buys at that price. For wheat and rice, government buying is large. For pulses, oilseeds and copra, it is not. PM-AASHA is the set of tools that step in when market prices fall below MSP, or when perishable prices crash.
- PIB released a backgrounder titled “Strengthening MSP-Based Price Support to empower farmers”.
- Budget: ₹5437.99 crore spent in 2024–25, ₹6,941.36 crore in 2025–26 and ₹7,200.00 crore in 2026-27.
- Recent reforms: biometric farmer authentication, direct procurement from pre-registered farmers, transport support for tomato, onion and potato, and price differential payments under MIS.
- In Bihar, NCCF began organised masoor procurement for the first time, through 48 PACS and FPOs.
What are the procurement limits?
- From 2024–25, PSS procurement is allowed up to 25% of a State or UT’s production.
- Beyond that, the Committee of Secretaries may approve up to 25% of national production.
- To cut pulse imports, Tur, Urad and Masur can be procured up to 100% of State production.
- Only registered farmers with valid land records are eligible.
How do the four components differ?
| Component | What it does | Crops |
|---|---|---|
| Price Support Scheme (PSS) | physical procurement at MSP when prices fall below MSP | pulses, oilseeds, copra |
| Price Stabilisation Fund (PSF) | buffer stocks to protect consumers; run by Dept of Consumer Affairs | pulses, onions, potatoes |
| Price Deficiency Payment Scheme (PDPS) | pays the gap between MSP and market price, up to 15% of MSP, without procurement | mainly oilseeds |
| Market Intervention Scheme (MIS) | procurement when prices fall at least 10% below the previous normal season; Centre-State cost sharing | perishables like tomato, onion, potato |
What do MSP margins look like in 2026–27?
| Crop | Cost | MSP | Margin |
|---|---|---|---|
| Paddy (common) | ₹1,627 | ₹2,441 | ₹814 |
| Soybean (yellow) | ₹3,805 | ₹5,708 | ₹1,903 |
| Wheat | ₹1,239 | ₹2,585 | ₹1,346 |
| Jute | ₹3,662 | ₹5,925 | ₹2,293 |
How does PSS procurement work?
- Market price falls below MSP at harvest
- State asks for procurement under PSS
- NAFED or NCCF buys from registered farmers at MSP
- Biometric authentication and land records checked
- Payment goes directly to the farmer
Why does PM-AASHA matter?
| Angle | What to note |
|---|---|
| Farmers | Shields growers of pulses and oilseeds from distress sales. |
| Consumers | PSF buffers keep onion and pulse prices in check. |
| Self-reliance | 100% procurement of Tur, Urad and Masur supports pulse output. |
| Fiscal | Budget rose to ₹7,200 crore in 2026-27. |
| Governance | Digital tools like e-NAM and biometric checks cut leakage. |
What are the challenges in PM-AASHA?
- PSS is capped at 25% of State production for most crops, so many farmers still sell below MSP.
- PDPS pays the gap only up to 15% of MSP.
- Procurement depends on states asking for it in time.
- Perishables have no MSP; MIS works only after prices fall at least 10%.
What should be done next on PM-AASHA?
- Prepare procurement centres before each season, as the scheme intends.
- Expand PACS- and FPO-led procurement, as in Bihar and Chhattisgarh.
- Use e-NAM and warehouses to link farmers to markets.
- Review limits for crops where imports are high.
What can Prelims ask on PM-AASHA?
- PM-AASHA launched September 2018; four components PSS, PSF, PDPS, MIS.
- PDPS: pays MSP-market price gap up to 15% of MSP; no physical procurement.
- MIS: triggered by a fall of at least 10% over the previous normal season.
- PSS: 25% of State production; Tur, Urad, Masur up to 100%.
- e-NAM: 1,656 mandis in 23 States and 4 UTs.
How to write about PM-AASHA in Mains
Practice question (15 marks, 250 words): Announcing MSP is not enough without effective procurement. Discuss how PM-AASHA tries to make MSP effective for pulses, oilseeds and perishables, and its limits.
- Intro: MSP vs realised price.
- PM-AASHA: four components with crops.
- Reforms: digital authentication, 100% pulse procurement, budget rise.
- Limits: 25% cap, 15% PDPS ceiling, state dependence.
- Way forward: PACS/FPOs, e-NAM, warehousing.
How to use this in Mains
- As per PIB (2026-08-21): PM-AASHA is the price-support framework for MSP: procurement of pulses, oilseeds and copra by Central and State agencies to reduce distress sales.
- PM-AASHA tests whether MSP can work for pulses and oilseeds, not just wheat and rice.
Quotable data pointPM-AASHA is the price-support framework for MSP: procurement of pulses, oilseeds and copra by Central and State agencies to reduce distress sales.
PIB: PIB Backgrounder: PM-AASHA, 21 Aug 2026
Exam angle
Prelims: PM-AASHA components.
Practice MCQs
Original practice questions (not PYQs).
Under PM-AASHA, which component pays farmers the difference between MSP and market price without physical procurement?
Answer (c) & explanation
PIB Backgrounder, 21 Aug 2026.
Consider the following about the Market Intervention Scheme:
1. It covers perishables for which MSP does not apply.
2. It is triggered when prices fall at least 10% below the previous normal season.
3. It is fully funded by the Centre.
Which are correct?
Answer (a) & explanation
PIB Backgrounder, 21 Aug 2026: Centre-State cost sharing.
The Price Stabilisation Fund, now merged with PM-AASHA, is managed by
Answer (b) & explanation
PIB Backgrounder, 21 Aug 2026.
Questions students ask about this
What is PM-AASHA?
Pradhan Mantri Annadata Aay Sanrakshan Abhiyan, launched in September 2018 as the umbrella scheme for MSP-based price support to farmers.
What are its components?
The Price Support Scheme, Price Stabilisation Fund, Price Deficiency Payment Scheme and Market Intervention Scheme.
How much is its budget in 2026-27?
₹7,200 crore.
Which pulses can be procured up to 100 per cent of State production?
Tur, Urad and Masur.
Keep studying
Go deeper
Official source: PIB: PIB Backgrounder: PM-AASHA, 21 Aug 2026
facts from cited sources only; faculty review pending