Why in News?
The Centre approved large-scale procurement of pulses and oilseeds at MSP under the Price Support Scheme (PSS) in four states: Tamil Nadu, Gujarat, Uttar Pradesh, and Haryana.
Key Facts for Prelims: MSP & PM-AASHA
Minimum Support Price (MSP)
- MSP is the guaranteed rate at which the government buys crops from farmers
- Recommending body: Commission for Agricultural Costs and Prices (CACP) under Ministry of Agriculture
- Approving body: Cabinet Committee on Economic Affairs (CCEA), chaired by PM
- MSP is announced for 22 mandated crops (14 Kharif + 6 Rabi + 2 commercial) + FRP for sugarcane
PM-AASHA
- Type: Central Sector Umbrella Scheme
- Nodal Ministry: Ministry of Agriculture and Farmers Welfare
PM-AASHA’s Three Components
| Component | Mechanism | Crops |
|---|---|---|
| Price Support Scheme (PSS) | Physical procurement at MSP | Pulses, Oilseeds, Copra |
| Price Deficiency Payment Scheme (PDPS) | DBT cash transfer of MSP-market price gap | Oilseeds |
| Private Procurement & Stockist Scheme (PPSS) | Private stockists procure oilseeds at MSP — pilot basis | Oilseeds (selected districts) |
Trap / Confusing Points
| Confusion | Correct Fact |
|---|---|
| CACP approves MSP | CACP only recommends; CCEA approves |
| MSP covers all crops | MSP for 22 mandated crops + FRP for sugarcane only |
| PM-AASHA is under Ministry of Finance | PM-AASHA is under Ministry of Agriculture and Farmers Welfare |
| PDPS is physical procurement | PDPS is a cash transfer (DBT) — no physical procurement |
| PSS covers all crops | PSS covers only pulses, oilseeds, and copra |
Practice MCQs
1. Which body recommends MSP for crops?
a. CCEA
b. NITI Aayog
c. Commission for Agricultural Costs and Prices (CACP)
d. FCI
Ans: C
CACP recommends MSP; CCEA chaired by PM gives final approval.
2. MSP is announced for how many mandated crops?
a. 14
b. 18
c. 22
d. 26
Ans: C
MSP is announced for 22 mandated crops (14 Kharif + 6 Rabi + 2 commercial) plus FRP for sugarcane.
3. Which PM-AASHA component involves direct cash transfer to farmers?
a. PSS
b. PDPS
c. PPSS
d. Market Intervention Scheme
Ans: B
PDPS covers the deficit between MSP and market price via DBT.
4. PSS procurement was recently approved for which four states?
a. TN, Gujarat, UP, Haryana
b. MP, Rajasthan, Punjab, Maharashtra
c. Bihar, Odisha, Karnataka, AP
d. Telangana, WB, Kerala, Assam
Ans: A
PSS procurement approved in Tamil Nadu, Gujarat, Uttar Pradesh, and Haryana.
5. PM-AASHA is classified as which type of scheme?
a. Centrally Sponsored Scheme
b. State Sector Scheme
c. Central Sector Umbrella Scheme
d. PPP Scheme
Ans: C
PM-AASHA is a Central Sector Umbrella Scheme under Ministry of Agriculture and Farmers Welfare.
To learn current affairs from exam point of view, Click here.
To know more about PM-AASHA, Click here.
