New Delhi: The government’s Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) is designed to strengthen the Minimum Support Price (MSP) system and help farmers secure remunerative prices when market rates fall below the government-declared support price.
Launched in September 2018, PM-AASHA brings together multiple price-support mechanisms covering different crops and market conditions. The broader objective is to prevent distress sales by farmers while also helping manage price volatility for consumers.
For 2026-27, the government has allocated Rs 7,200 crore to PM-AASHA, compared with Rs 6,941.36 crore in 2025-26. The scheme recorded an actual expenditure of Rs 5,437.99 crore in 2024-25.
PM-AASHA is an umbrella framework comprising four major components:
Price Support Scheme (PSS)
Price Stabilization Fund (PSF)
Price Deficiency Payment Scheme (PDPS)
Market Intervention Scheme (MIS)
Each component addresses a different market situation, from falling prices for MSP-covered crops to sudden price spikes in essential commodities.
Under the Price Support Scheme, the government procures pulses, oilseeds and copra at MSP when market prices fall below the support price.
Central agencies including the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation of India (NCCF) undertake procurement in coordination with state governments.
Since the 2024-25 procurement year, procurement of pulses, oilseeds and copra has generally been permitted up to 25% of a state's or Union Territory's production. Additional procurement can be approved by the Committee of Secretaries up to 25% of national production.
For Tur, Urad and Masur, however, procurement can extend up to 100% of state production, a measure aimed at encouraging domestic pulse production and reducing dependence on imports.
The Price Deficiency Payment Scheme (PDPS) offers MSP protection without requiring the government to physically purchase and store the produce.
Under the mechanism, eligible farmers receive the difference between the MSP and the actual market price in a notified market, subject to the prescribed limit of up to 15% of the MSP value. Payments are transferred directly to farmers' bank accounts.
The mechanism is primarily used for oilseeds and is intended to reduce the need for large-scale government procurement and storage.
The Price Stabilization Fund (PSF) focuses on protecting consumers from sharp fluctuations in the prices of essential agricultural commodities.
The government can procure commodities such as pulses, onions and potatoes during periods of favourable prices to create buffer stocks. These stocks can later be released when supplies tighten or prices rise sharply.
Although PSF has been merged with PM-AASHA, it continues to be administered by the Department of Consumer Affairs.
The Market Intervention Scheme (MIS) applies to perishable agricultural and horticultural commodities that are not covered by MSP.
It can be used for commodities such as tomatoes, onions and potatoes when market prices fall sharply. The scheme can be activated when prices decline by at least 10% compared with normal rates of the previous season.
Procurement operations are carried out through central agencies such as NAFED and NCCF, with the financial burden shared by the Centre and state governments.
The mechanism is particularly important during periods of excess production, when a sudden glut can cause farm-gate prices to collapse.
The government has increasingly turned to digital systems to improve transparency and make procurement more efficient.
Measures include Aadhaar-enabled authentication, e-NAM, e-Samriddhi and e-Samyukti. Recent reforms have also introduced biometric authentication and direct procurement from pre-registered farmers.
The government has simultaneously expanded agricultural infrastructure and market connectivity.
According to government data, the Agriculture Infrastructure Fund has sanctioned loans worth Rs 96,426 crore for 2,14,437 projects. The e-NAM platform has integrated 1,656 mandis across 23 states and four Union Territories, with trade worth Rs 4,94,847 crore.
The government has also sanctioned 50,249 warehouses with a combined storage capacity of 992.6 lakh metric tonnes, along with 25,081 agricultural marketing infrastructure projects.
The government says MSP remains above the estimated cost of production for several major crops.
For 2026-27, the estimated production cost of common paddy is Rs 1,627 per quintal, against an MSP of Rs 2,441, giving farmers a margin of Rs 814.
For soybean (yellow), the production cost is estimated at Rs 3,805 per quintal compared with an MSP of Rs 5,708, resulting in a margin of Rs 1,903.
For wheat, the production cost is Rs 1,239 per quintal against an MSP of Rs 2,585, giving a margin of Rs 1,346.
For jute, the production cost is estimated at Rs 3,662 per quintal, while the MSP stands at Rs 5,925, resulting in a margin of Rs 2,293.
The government has highlighted procurement operations in Bihar and Chhattisgarh as examples of efforts to expand the reach of PM-AASHA.
In Bihar, organised procurement of masoor was undertaken through NCCF for the first time, with operations carried out through 48 Primary Agricultural Credit Societies and Farmer Producer Organisations.
As of August 10, 2026, NCCF had procured 1,042.65 metric tonnes of masoor, with 358 farmers registered and 285 benefiting from the procurement. NAFED had procured another 1,814.13 metric tonnes, registering 495 farmers and benefiting 455.
In Chhattisgarh, procurement has been expanded through 200 operational PACS and 12 FPOs.
As of August 10, NCCF had procured 18,392.228 metric tonnes of chana, 22.231 metric tonnes of masoor and 1,035.0205 metric tonnes of mustard. It had registered 21,721 farmers, with 13,790 benefiting.
NAFED had procured 17,020.65 metric tonnes of chana and 355.05 metric tonnes of masoor, registering 46,146 farmers and benefiting 13,673.
PM-AASHA is aimed at bridging the gap between the MSP announced by the government and the price farmers actually receive in the market.
Its four mechanisms address different challenges: direct procurement when prices fall, compensation when produce is sold below MSP, buffer stocks to manage price fluctuations and market intervention during sharp declines in prices of perishables.
With increased procurement centres, digital authentication, improved market infrastructure and greater involvement of agencies such as NAFED and NCCF, the government is seeking to expand the scheme's reach.
At its core, PM-AASHA is intended to give farmers greater price security, reduce distress sales and strengthen agricultural markets, while also helping prevent sudden spikes in consumer prices.