Price Support Scheme (PSS)

Price Support Scheme Latest News

The Union Agriculture minister recently approved a move to procure moong and urad in Madhya Pradesh and urad in Uttar Pradesh under the Price Support Scheme (PSS).

About Price Support Scheme 

• It is implemented by the Government of India under India’s umbrella scheme “PM-AASHA” (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan), launched in 2018.
• Implemented by: 
  • The Department of Agriculture & Cooperation implements this scheme for procurement of oilseeds, pulses, and cotton, through the National Agricultural Cooperative Marketing Federation of India (NAFED), which is the Central nodal agency, at the MSP (minimum support price) declared by the government.
  • In addition to the NAFED, the Food Corporation of India (FCI) will take up PSS operations in states/districts.
• What are the Benefits?
  • When the price of commodities falls below the MSP, State and central notified procurement nodal agencies purchase commodities directly from the farmers at MSP under FAQ (Fair Average Quality).
  • By this way prices of the main commodities are procured and protect the farmers against the economical loss in farming.
  • Procurement under PSS is continued till prices stabilize at or above the MSP.
  • The procurement expenditure and losses due to procurement will be borne by the Central Government as per norms.

‹ ›

Key Facts about Pradhan Mantri Annadata Aay SanraksHan Abhiyan

• It is an umbrella scheme aimed at ensuring remunerative prices to the farmers for their produce.
• PM AASHA has three components, and states can choose whichever one they wish to implement. The three components are
• Price Support Scheme (PSS)
• Price Deficiency Payment Scheme (PDPS): 
  • Under PDPS, it is proposed to cover all oilseeds for which MSP is notified.
  • Direct payment of the difference between the MSP and the selling/model price will be made to pre-registered farmers selling his produce in the notified market yard through a transparent auction process.
  • All payments will be done directly into the registered bank account of the farmer.
  • This scheme does not involve any physical procurement of crops, as farmers are paid the difference between the MSP price and the Sale/model price on disposal in the notified market.
  • The support of the central government for PDPS will be given as per norms.
• Pilot of Private Procurement and Stockist Schemes (PPPS):
  • In addition to PDPS, for oilseeds, states have the option to roll out PPSS on a pilot basis in selected districts/Agricultural Produce Market Committee (APMCs) of districts involving the participation of private stockists. 
  • This scheme will allow private players to participate in the procurement of crops.
  • The pilot district/selected APMC(s) of the district will cover one or more crops of oilseeds for which MSP is notified.
• Only one scheme, i.e., PSS or PDPS, may be made operational in one State with respect to one commodity.

Source: LMINT