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Question

Difficulty: MediumAgriculture Sector Economics, Land Reforms, Subsidies, and Public Distribution System

Regarding the components and operational mechanisms of the Pradhan Mantri Annadata Aay Sanraksan Abhiyan (PM-AASHA) umbrella scheme for agricultural price support in India, which of the following statements are correct?

  1. Under the Price Support Scheme (PSS), physical procurement of notified pulses, oilseeds, and copra is undertaken by central nodal agencies with state support.Answer
  2. The Price Deficiency Payment Scheme (PDPS) covers oilseeds and pays registered farmers the difference between MSP and the market price without physical crop procurement.Answer
  3. C
    The Private Procurement and Stockist Scheme (PPPS) mandates private agencies to physically procure staple foodgrains like wheat and rice for the central pool.
  4. D
    The implementation of PDPS requires mandatory warehousing and physical inventory management by the Food Corporation of India.

Answer

The correct statements are those stating that PSS involves physical procurement of notified pulses, oilseeds, and copra by central agencies, and that PDPS provides direct price-difference payments to oilseed farmers without physical crop procurement.
The statements describing physical procurement under PSS by central nodal agencies (like NAFED) for pulses, oilseeds, and copra, as well as direct price-difference compensation under PDPS for oilseeds without physical procurement, accurately depict the provisions of PM-AASHA.

Step-by-Step Solution

1
Analyze the core objective and structure of the PM-AASHA umbrella scheme.
PM-AASHA was approved in 2018 to ensure remunerative prices to farmers for oilseeds, pulses, and copra through three distinct sub-schemes: PSS, PDPS, and PPPS.
Understanding sub-scheme distinctions is essential for evaluating agricultural price intervention policies.
2
Evaluate the operational mechanism of the Price Support Scheme (PSS).
PSS handles physical procurement of pulses, oilseeds, and copra via agencies like NAFED when market prices dip below MSP, making the statement regarding physical procurement correct.
PSS is the traditional physical intervention leg of central price support.
3
Evaluate the mechanism of the Price Deficiency Payment Scheme (PDPS).
PDPS covers oilseeds and compensates farmers directly via bank transfer for the price deficit without taking physical delivery or storing crops, making the direct payout statement correct and the warehousing statement incorrect.
PDPS reduces central storage and handling overheads while insulating farmers against market price crashes.
4
Examine the scope of the Private Procurement and Stockist Scheme (PPPS).
PPPS is piloted exclusively for oilseeds in selected districts to involve private players in MSP protection, not for central pool staples like wheat and rice.
Wheat and rice procurement remains strictly governed by FCI and state procurement agencies for PDS requirements.

Key Concept

PM-AASHA Agricultural Price Protection Architecture
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Topics

Agriculture Sector Economics, Land Reforms, Subsidies, and Public Distribution System