₹7,200 Crore Allocated to PM-AASHA for 2026–27

The Government of India has allocated ₹7,200 crore for the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) for 2026–27. This is higher than the ₹6,941.36 crore allocated in 2025–26. The increased allocation aims to strengthen price-support measures and help farmers receive a remunerative price for their agricultural produce.

Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)

¨     PM-AASHA was launched in September 2018 to ensure remunerative prices for farmers, strengthen Minimum Support Price (MSP) implementation and reduce distress sales, while maintaining price stability for consumers.

¨     It brings together four mechanisms: Price Support Scheme (PSS), Price Stabilization Fund (PSF), Price Deficiency Payment Scheme (PDPS) and Market Intervention Scheme (MIS), depending on the crop and market conditions.

¨     The actual expenditure was ₹5,437.99 crore in 2024–25, while the allocation increased from ₹6,941.36 crore in 2025–26 to ₹7,200 crore in 2026–27.

Key Components of PM-AASHA

¨     Price Support Scheme (PSS): Under PSS, the government procures pulses, oilseeds and copra at MSP when market prices fall below MSP during the peak harvesting period, on the request of the concerned State/UT Government.

¨     Procurement is undertaken by NAFED and NCCF through State agencies, directly from pre-registered farmers with valid land records and prescribed Fair Average Quality (FAQ) standards.

¨     From 2024–25, procurement is initially allowed up to 25% of State/UT production, with additional procurement possible up to 25% of national production with approval of the Committee of Secretaries.

¨     For Tur, Urad and Masur, procurement is permitted up to 100% of State production to promote domestic pulse production and reduce import dependence.

¨     Price Stabilization Fund (PSF): PSF protects consumers from price volatility by procuring commodities such as Tur, Urad, Chana, Moong, Masur and onion during harvest to build buffer stocks.

¨     These stocks are released in a calibrated manner during low supply or rising prices to control price spikes; PSF is merged with PM-AASHA but remains managed by the Department of Consumer Affairs.

¨     Price Deficiency Payment Scheme (PDPS): Under PDPS, farmers do not physically sell their produce to a government agency; instead, they receive the difference between MSP and the actual market price in a notified market, up to 15% of the MSP value.

¨     The payment goes directly to their bank accounts, and the scheme is mainly used for oilseeds, reducing the need for large-scale physical procurement and storage.

¨     Market Intervention Scheme (MIS): MIS covers perishable agricultural and horticultural commodities without MSP, such as tomatoes, onions and potatoes.

¨     It is activated when prices fall by at least 10% from normal previous-season rates, with operations through NAFED/NCCF and costs shared by the Centre and States, particularly during glut situations.

Need and Significance of PM-AASHA

¨     Reduces distress sales: PSS provides procurement at MSP when market prices fall below MSP, while PDPS provides price-difference payments without physical procurement.

¨     Promotes pulse self-sufficiency: Procurement of Tur, Urad and Masur up to 100% of State production encourages domestic pulse cultivation and reduces import dependence.

¨     Balances farmer and consumer interests: PSS and PDPS support farmers, while PSF and MIS help control price spikes and crashes, benefiting both farmers and consumers.

¨     Improves transparency and market access: Aadhaar/biometric authentication, e-Samriddhi, e-Samyukti and e-NAM strengthen digital procurement, with e-NAM covering 1,656 mandis, ₹4,94,847 crore trade, 4,776 FPOs and 7,334 FPOs on ONDC.

¨     Strengthens infrastructure and grassroots procurement: AIF, 50,249 warehouses (992.6 lakh MT) and 25,081 marketing projects, along with PACS/FPO-based procurement in Bihar and Chhattisgarh, strengthen farm-to-market connectivity.