Why this matters now
The MSP debate is one of the most contentious in Indian agriculture. PM-AASHA is examined as the government’s mechanism to make MSP effective for non-cereal crops, and as a window into the broader questions of procurement, market reform and farmer income.
The three components
| Component | How it works |
|---|---|
| Price Support Scheme (PSS) | Government agencies physically procure oilseeds, pulses and copra at MSP. |
| Price Deficiency Payment Scheme (PDPS) | Farmers sell in the open market; if the price is below MSP, the government pays the difference directly — no physical procurement. |
| Private Procurement & Stockist Scheme (PPSS) | A pilot allowing private players to procure at MSP for oilseeds. |
What MSP is
The Minimum Support Price is the price at which the government commits to buy crops from farmers, announced for major crops on the recommendation of the Commission for Agricultural Costs and Prices (CACP). MSP protects farmers from distress sales when market prices crash. Historically, effective MSP procurement was strong mainly for wheat and rice — PM-AASHA aims to extend assurance to oilseeds and pulses.
Significance and debate
PM-AASHA matters because announcing an MSP is meaningless if farmers cannot sell at it. PDPS is notable for being procurement-free (lower storage/logistics cost), though it requires accurate price and quantity data. Debates continue over the fiscal cost, coverage, the call for a legal guarantee of MSP, and the need to diversify away from water-intensive cereals toward pulses and oilseeds (which PM-AASHA encourages).
UPSC angle
Memorise the three components — PSS (procure), PDPS (pay the difference), PPSS (private procurement pilot) — and the policy aim: make MSP effective for oilseeds and pulses, not just wheat and rice.
Frequently asked questions
What is PM-AASHA?
A 2018 umbrella scheme to ensure farmers receive the Minimum Support Price for oilseeds, pulses and copra, through price support, price-deficiency payments and a private-procurement pilot.
What are the components of PM-AASHA?
The Price Support Scheme (PSS) (physical procurement at MSP), the Price Deficiency Payment Scheme (PDPS) (paying the gap between market price and MSP), and the Private Procurement & Stockist Scheme (PPSS) pilot.
What is MSP?
The Minimum Support Price — the price at which the government commits to buy crops from farmers, set on the advice of the Commission for Agricultural Costs and Prices (CACP).
How is PDPS different from physical procurement?
Under PDPS, the government does not buy the crop; the farmer sells in the market and is paid the difference if the price falls below MSP — avoiding storage and logistics costs.