- Why in news
- On 21 August 2026, PIB published a explainer on PM-AASHA, the price-support framework for farmers. It notes a ₹7,200 crore allocation for 2026-27 and first-time organised masoor procurement in Bihar.
- What it is
- PM-AASHA is a umbrella scheme launched in September 2018 to give farmers remunerative prices and cut distress sales. It combines four tools: Price Support Scheme, Price Stabilization Fund, Price Deficiency Payment Scheme and Market Intervention Scheme. Central nodal agencies and states run them according to crop and market conditions.
- Launch
- The scheme was launched in September 2018.
- Four components
- PSS, PSF, PDPS and MIS make up PM-AASHA.
- PDPS
- Produce is not physically procured. Farmers get the gap between MSP and market price, up to 15% of MSP, in their bank accounts.
- MIS trigger
- MIS covers perishables with no MSP and activates when market prices fall at least 10% below the previous normal season's rates. Centre and States share costs.
- PSF management
- PSF is managed by the Department of Consumer Affairs and keeps buffer stocks of pulses, onions and potatoes.
Don’t confuse with PSS vs PDPS: PSS physically procures at MSP; PDPS only pays the price gap and procures nothing.
Don’t confuse with PSF vs MIS: PSF builds buffer stocks to protect consumers; MIS buys perishables when prices crash to protect growers.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Strengthens MSP delivery and cuts distress sales, protecting farm incomes.
- Balances farmer returns with consumer price stability through buffer stocks.
- Pulse procurement up to 100% for Tur, Urad and Masur supports self-sufficiency and cuts imports.
Problems
- Procurement is concentrated in a few crops and regions, so many farmers get no MSP benefit.
- Only registered farmers with land records are eligible, which excludes tenants and unregistered cultivators.
- Fiscal cost and state-level capacity gaps limit coverage; PDPS and MIS depend on timely state participation.
Way forward
- Widen crop and state coverage and include tenant farmers through better registration.
- Expand storage and digital platforms such as e-NAM and e-Samriddhi for transparent, timely payments.
- Align procurement with crop diversification and market-based options like PDPS.
Put in your answer
MSP margin example: Wheat MSP of ₹2,585 per quintal against cost of ₹1,239 gives a ₹1,346 margin in 2026-27.
Recent reforms: Reforms include biometric farmer authentication, direct procurement from pre-registered farmers and transport support for tomato, onion and potato.
- 2018Mains GS3 · Q3Define MSP and explain how it can rescue farmers from low income trap
- 2017Mains GS3 · Q15Effects of subsidies; significance of crop insurance, MSP for small farmers
- 2024Mains GS3 · Q14Importance of buffer stocks for stabilising prices and storage challenges
- 2004Prelims Q77Food grain procurement target versus open-ended policy; MSP coverage only cereals
- 2020Prelims Q69Whether MSP procurement is unlimited and whether MSP stays above market prices
- 2009Prelims Q9Whether CACP recommends MSP for 32 crops; National Food Security Mission
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Single answer
Ours, not from a UPSC paper
Consider the following statements about the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA): 1. Under the Price Deficiency Payment Scheme, the government physically procures the produce at MSP. 2. The Market Intervention Scheme targets perishable commodities, such as tomato, onion and potato, for which MSP does not apply. 3. The Price Stabilization Fund under PM-AASHA is managed by the Department of Agriculture and Farmers Welfare. 4. Under the Price Support Scheme, procurement of Tur, Urad and Masur can go up to 100% of a State's production.
Which of the statements given above are correct?
True or false?
1 of 5
Statements the way Prelims prints them. Say first, then see the fact.
1.PM-AASHA was launched in September 2018.
True. Launched in September 2018.
2.Under the Price Support Scheme, procurement is mainly of pulses, oilseeds and copra.
True. PSS mainly covers pulses, oilseeds and copra.
3.Under the Price Deficiency Payment Scheme, the government physically procures the produce at MSP.
False. PDPS does not procure; it pays the price difference directly to farmers' bank accounts.
4.The Market Intervention Scheme targets perishable commodities such as tomato, onion and potato, for which MSP does not apply.
True. MIS covers perishables without MSP.
5.PSS procurement through NAFED and NCCF is done at the request of state governments.
True. NAFED and NCCF procure at the state governments' request.
Written by us from the release, not by UPSC; checked by a second model.
Mains practice
15 marks · 250 words
The Government has reported a ₹7,200 crore allocation for PM-AASHA in 2026-27 and the first organised procurement of masoor in Bihar. Discuss the provisions of PM-AASHA and examine the challenges in making MSP-based price support reach small and marginal farmers.
Worth revising until Prelims 2028: most news questions come within two years of the event.