Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)
Issued by PIB Backgrounder
Read or download the official PDF of this gazette notification issued by the PIB Backgrounder on 21st August 2026. Classified under Press Release.
Executive Summary & Key Takeaways
Executive Summary The Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) is the Government of India’s flagship framework designed to ensure remunerative prices for farmers and maintain price stability for consumers. For the 2026–27 period, the scheme has been allocated a budget of ₹7,200 crore to strengthen Minimum Support Price (MSP) implementation through digital reforms and expanded procurement infrastructure. The document highlights successful implementation milestones in Bihar and Chhattisgarh as of August 10, 2026, and details significant profit margins for major crops.
Key Points / Main Content
Core Components of PM-AASHA
- Price Support Scheme (PSS): Physical procurement of pulses, oilseeds, and copra when market prices fall below MSP. Initially allowed up to 25% of State production, but increased to 100% for Tur, Urad, and Masur to reduce imports.
- Price Stabilization Fund (PSF): Manages buffer stocks of essential commodities (pulses, onions, potatoes) to protect consumers from price volatility during lean seasons.
- Price Deficiency Payment Scheme (PDPS): Provides direct cash transfers to farmers for the difference between MSP and market price (up to 15% of MSP) for oilseeds, removing the need for physical procurement.
- Market Intervention Scheme (MIS): Targets perishable horticultural commodities (tomatoes, onions, potatoes) not covered by MSP, activating when market prices drop at least 10% below normal season rates.
Financial and Economic Performance
- Budgetary Growth: Expenditure has increased steadily from ₹5,437.99 crore in 2024–25 to a budgeted ₹7,200.00 crore for 2026–27.
- Crop Margins (2026–27): MSP rates provide significant margins over production costs, notably ₹2,293 per quintal for jute, ₹1,903 for yellow soybean, ₹1,346 for wheat, and ₹814 for common paddy.
Digital Reforms and Infrastructure
- Modernization: Integration of Aadhaar-enabled authentication, e-NAM, e-Samriddhi, and e-Samyukti to improve transparency and efficiency.
- Post-Harvest Support: The Agriculture Infrastructure Fund (AIF) has sanctioned ₹96,426 crore for over 2.14 lakh projects; 50,249 warehouses have been sanctioned to improve storage capacity.
- Connectivity: 1,656 mandis are integrated with e-NAM, and 7,334 Farmer Producer Organizations (FPOs) have been onboarded onto the Open Network for Digital Commerce (ONDC).
Impact Analysis
Farmers Impact Farmers benefit from guaranteed remunerative prices, reduced distress sales, and direct benefit transfers into bank accounts. Digital reforms like biometric authentication ensure transparency and eliminate intermediaries. Action Required Farmers must be registered with valid land records to be eligible for procurement under the Price Support Scheme.
Consumers Impact The Price Stabilization Fund (PSF) ensures the affordability of essential agri-horticultural products by releasing buffer stocks to control price spikes during lean seasons. Action Required No direct action required; beneficiaries of price stability across essential commodities.
Central and State Nodal Agencies (NAFED, NCCF, PACS) Impact Agencies are responsible for the logistical execution of procurement, infrastructure preparation, and cost-sharing between the Centre and States for specific schemes like MIS. Action Required Agencies must prepare procurement infrastructure and arrangements before each marketing season and implement biometric authentication for registered farmers.
Farmer Producer Organizations (FPOs) Impact FPOs are being increasingly integrated into the mainstream trade through e-NAM and ONDC, enhancing their market reach and bargaining power. Action Required FPOs are encouraged to onboard onto digital platforms like ONDC and participate in organized procurement operations as seen in the Bihar and Chhattisgarh models.
Key Entities Referenced
Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA): The flagship umbrella scheme designed to ensure remunerative prices for farmers through integrated price support mechanisms.
Minimum Support Price (MSP): The government-mandated price floor for agricultural produce, which forms the basis for interventions and procurement under PM-AASHA.
Price Support Scheme (PSS): A core component of PM-AASHA that facilitates physical procurement of pulses, oilseeds, and copra by central nodal agencies when market prices fall below MSP.
Price Deficiency Payment Scheme (PDPS): A scheme under PM-AASHA that provides direct payment of the difference between MSP and market price to farmers without physical procurement of crops.
National Agricultural Cooperative Marketing Federation of India (NAFED): The primary central nodal agency responsible for executing procurement and market intervention operations under the PM-AASHA framework.
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PIB Backgrounder
Pradhan Mantri Annadata Aay Sanrakshan
Abhiyan (PM-AASHA)
Strengthening MSP-Based Price Support to empower
farmers
प्रव तथ: 21 AUG 2026 10:43AM by PIB Delhi
Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) is the Government’s flagship
price-support framework for remunerative prices for farmers. It includes various schemes to strengthen
the implementation of the Minimum Support Price (MSP) and reduce distress sales. Procurement of
pulses, oilseeds, and copra is undertaken by the Central and State Governments through agencies such
as NAFED and NCCF. With a ₹7,200 crore Budget allocation for 2026–27, PM-AASHA strengthens
effective price-support interventions. Digital reforms, including Aadhaar-enabled authentication, e-
NAM, e-Samriddhi, and e-Samyukti, have improved transparency and procurement efficiency. Support
from the Agriculture Infrastructure Fund and expanded procurement coverage have further
strengthened the scheme.
Ensuring Remunerative Prices to Farmers
The government has taken several initiatives to ensure that the benefits of the Minimum Support Price
(MSP) reach all farmers, including small and marginal farmers. One major initiative is the Pradhan
Mantri Annadata Aay Sanrakshan Abhiyan (PM AASHA). The Government launched the scheme in
September 2018. It was designed to ensure remunerative prices for farmers while maintaining price
stability for consumers.
PM AASHA brings together multiple price support mechanisms under a unified framework. Each
mechanism is implemented according to the crop and market conditions. The scheme strengthens MSP
implementation and reduces distress sales among farmers. It also stabilises farm incomes while ensuring
food price stability for consumers.
Under PM AASHA, procurement arrangements begin before each marketing season. Central nodal
agencies and state governments prepare procurement infrastructure before crops reach the markets. This
coordinated approach ensures timely procurement operations and strengthens effective MSP
implementation across the country.
Policy design and institutional frameworkPM AASHA broadly consists of four key components: Price Support Scheme (PSS), Price Stabilization
Funds (PSF), Price Deficiency Payment Scheme (PDPS), and Market Intervention Scheme (MIS).
1. Price Support Scheme (PSS)
This scheme ensures procurement of crop at MSP when market prices fall below MSP during harvest. It
mainly covers pulses, oilseeds, and copra. Procurement is carried out through agencies such as the
National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative
Consumers' Federation of India Limited (NCCF) at the request of state governments. Only registered
farmers with valid land records are eligible, which ensures direct benefit without intermediaries. This
helps prevent distress selling and ensures income stability for farmers during price crashes.
From the 2024–25 procurement year, under the Price Support Scheme (PSS), procurement of pulses,
oilseeds, and copra is initially allowed up to 25% of a State/UT’s production. Additional procurement
beyond this limit may be approved by the Committee of Secretaries up to 25% of national production.
However, to boost domestic pulse output and reduce imports, procurement of Tur, Urad, and Masur is
permitted up to 100% of State production.
2. Price Stabilization Fund (PSF)
The Price Stabilization Fund (PSF) protects consumers from price volatility by maintaining buffer stocks
of essential commodities like pulses, onions, and potatoes. It was set up to stabilize the prices of key agri-
horticultural products. Commodities are procured during harvest and released in lean seasons to control
price spikes and ensure affordability. PSF is now merged with PM-AASHA but continues to be managed
by the Department of Consumer Affairs.
3. Price Deficiency Payment Scheme (PDPS)
Under PDPS, farmers’ produce is not physically procured. Instead, they are paid the price difference
between the MSP and the actual market price in the notified market, up to 15% of the MSP value, directly
into their bank accounts. This scheme is mainly used for oilseeds and reduces the need for large
procurement infrastructure. It promotes market-based selling while still ensuring MSP protection to
farmers.
4. Market Intervention Scheme (MIS)The Market Intervention Scheme (MIS) is designed to procure a range of perishable agricultural and
horticultural commodities. It targets products such as tomatoes, onions, and potatoes for which a
Minimum Support Price does not apply. The scheme activates when market prices drop by at least 10%
over the previous normal season's rates. It operates through cost-sharing between the Centre and State
governments for the operations undertaken by Central Nodal Agencies like NAFED and NCCF. This
scheme is especially useful during glut situations when supply exceeds demand.
Enhanced Financial Support Under PM-AASHA
Under the Pradhan Mantri Annadata Aay Sanrakshan Yojana (PM-AASHA), the budget allocation has
steadily increased over the years. In 2024–25, the actual expenditure under the scheme was ₹5437.99
crore. The budget increased to ₹6,941.36 crore in 2025–26 and was further raised to ₹7,200.00 crore in
2026-27. This reflects the government's focus on ensuring income support for farmers and strengthening
price assurance mechanisms.
From Cost to Confidence: Strengthening Farmer Remunerative Returns
Higher Minimum Support Prices over production costs strengthen farmers’ income security while
encouraging sustained cultivation of key crops, supported by schemes under PM-AASHA. In 2026–27,
paddy (common) cost ₹1,627 per quintal, while its MSP was ₹2,441 per quintal, yielding a margin of
₹814. Soybean (yellow) cost ₹3,805 per quintal, while its MSP was ₹5,708 per quintal, yielding a
margin of ₹1,903.In 2026–27, wheat has a production cost of ₹1,239 per quintal and an MSP of ₹2,585 per quintal,
ensuring a ₹1,346 margin. Meanwhile, jute has a production cost of ₹3,662 per quintal and an MSP of
₹5,925 per quintal, providing the highest margin of ₹2,293. These remunerative MSP margins reinforce
the objectives of PM-AASHA by strengthening price assurance and improving farmers’ confidence in
agricultural markets.
Overall, MSP consistently exceeds the cost of production across crops and years, and PM-AASHA further
strengthens this system by ensuring better price realization for farmers. This highlights a supportive
framework that promotes stable income and growth in the agricultural sector.
Strengthening Farm-to-Market Connectivity
The Government has undertaken several initiatives to strengthen agricultural marketing and post-harvest
infrastructure, such as AIF and e-NAM. The Agriculture Infrastructure Fund (AIF) has sanctioned loans
worth ₹96,426 crore for 2,14,437 projects, mobilizing investments exceeding ₹1,66,179 lakh crore. The
e-NAM platform has integrated 1,656 mandis across 23 States and 4 Union Territories, facilitating trade
worth ₹4,94,847 crore. It has registered 4,776 FPOs on e-NAM and onboarded 7,334 FPOs onto Open
Network for Digital Commerce (ONDC). The government has also sanctioned 50,249 warehouses with
992.6 lakh metric tonnes storage capacity alongside 25,081 agricultural marketing infrastructure projects.
Recent PM-AASHA reforms introduced biometric farmer authentication, direct procurement from pre-
registered farmers, transportation support for Tomato, Onion, and Potato (TOP) crops, and price
differential payments under the Market Intervention Scheme.
Bihar and Chhattisgarh: Advancing PM-AASHA Implementation
In Bihar, organized procurement of masoor (lentil) has been initiated for the first time through the
National Cooperative Consumers' Federation of India (NCCF). This marks a significant step towards
strengthening pulse procurement under PM-AASHA through 48 Primary Agricultural Credit
Societies (PACS) and Farmer Producer Organizations (FPOs). As of 10th August, 2026, NCCF has
procured 1042.65 MT of masoor, registering 358 farmers and benefiting 285. During the same period,
NAFED has also procured 1,814.13 MT of masoor, registering 495 farmers and benefiting 455
farmers.
In Chhattisgarh, procurement operations under PM-AASHA have been strengthened through a network
of 200 operational PACS and 12 FPOs. As on 10th August, 2026, NCCF has procured 18392.228 MT
of chana, 22.231 MT of masoor, and 1035.0205 MT of Mustard. It registered 21,721 farmers andbenefited 13,790 farmers. During the same period, NAFED has procured 17,020.65 MT of chana and
355.05 MT of masoor. It registered 46,146 farmers and benefited 13,673 farmers. These initiatives
have strengthened MSP procurement, improved market access, and supported region-specific pulse self-
sufficiency goals.
Securing Farmer Incomes, Strengthening Markets
PM-AASHA has emerged as a strong and structured mechanism to support farmers through assured
procurement, price stabilization, and effective market interventions. This enables the timely procurement
of key crops like pulses, oilseeds, and copra through agencies such as NAFED and NCCF. The
establishment of additional procurement centres has further strengthened market access and collective
empowerment of farmers.
Digital reforms and infrastructure support have improved transparency, efficiency, and reach of
procurement operations across states. Collectively, these efforts ensure better price realization for
farmers, reduce distress sales, and promote a stable and resilient agricultural economy in the country.
References
Ministry of Agriculture and Farmers Welfare
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2155528®=3&lang=2
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2112407®=3&lang=2
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2246181®=3&lang=2
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2241414®=3&lang=2
https://agriwelfare.gov.in/Documents/AR_Eng_2024_25.pdf
https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154999&ModuleId=3®=3&lang=2
https://sansad.in/getFile/annex/268/AU2274_YtUhNS.pdf?source=pqars
Cabinet
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2055990®=3&lang=2
Ministry of Finance
www.indiabudget.gov.in/doc/eb/sbe1.pdf
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