PRICE SUPPORT SCHEME

Current Context: The Union Minister of Agriculture recently approved procurement of moong and urad in Madhya Pradesh, and urad in Uttar Pradesh, under the Price Support Scheme (PSS).

ABOUT PRICE SUPPORT SCHEME

• Part of PM-AASHA launched in 2018 to ensure farmers receive MSP (Minimum Support Price).
• Implemented via NAFED and FCI for pulses, oilseeds, and cotton procurement at MSP when market prices dip.
• Features:
  • Direct procurement ensures stable commodity prices and protects farmers’ incomes.
  • Covers losses and costs incurred by procurement agencies through central funding.
• PM-AASHA Components:

1. 1. Price Support Scheme (PSS) – physical procurement at MSP.
   2. Price Deficiency Payment Scheme (PDPS) – compensates farmers directly when MSP > market price, no physical procurement involved.

• Significance: Shields farmers from price volatility, supports income stability, and incentivises crop diversification.