The government merged the Price Support Scheme (PSS) and the Price Stabilization Fund (PSF) into PM AASHA, which aims to ensure remunerative prices to farmers, for their more effective implementation, it said in a statement.
PSS, implemented by the agriculture ministry, is operationalised only when the prices of farm produce fall below the minimum support price (MSP). In the case of PSF, which is under the food and consumer affairs ministry, the fund is used for procuring commodities at market prices and releasing those to consumers when prices are volatile.
Procurement of notified pulses, oilseeds and copra at MSP under the Price Support Scheme will be on 25% of national production of these notified crops from the 2024-25 season.
However, this ceiling will not be applicable in case of tur, urad and masur for the 2024-25 season as the government had earlier given a guarantee of procuring even 100% of the produce, as it is trying to achieve self-sufficiency for these pulses.
“In order to encourage the states to come forward for implementation of the Price Deficit Payment Scheme (PDPS) as an option for notified oilseeds, the coverage has been enhanced from existing 25% of state production of oilseeds to 40% and also enhanced the implementation period from three months to four months for the benefits of farmers,” the government said. In the compensation paid for the difference between the MSP and the modal price, the central government’s share is limited to 15% of the MSP.Extension of the Market Intervention scheme under PM-Aasha will provide remunerative prices to farmers growing perishable horticulture crops, as the government will procure 20-25% of production in case of TOP (tomato, onion and potato) crops.Fertiliser Subsidy for Rabi Season
The Cabinet has approved a proposal of the Ministry of Chemicals & Fertilisers for fixing the Nutrient Based Subsidy (NBS) rates for the rabi season 2024 (from October 1, 2024 to March 31, 2025) on phosphatic and potassic (P&K) fertilisers.
The tentative budgetary requirement for this would be about Rs 24,475.53 crore, the government said.
This will help in making these fertilisers available to farmers at subsidised, affordable and reasonable prices and rationalise the subsidy on P&K fertilisers in view of recent trends in the international prices of fertilisers and inputs.
The government is making available 28 grades of P&K fertilisers to farmers at subsidised prices through fertiliser manufacturers and importers.