What is PM-AASHA and which ministry runs it?

Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) is an umbrella price-support scheme launched in September 2018 by the Union Cabinet under the Department of Agriculture, Cooperation & Farmers Welfare (now the Department of Agriculture & Farmers Welfare, DAFW). It is designed to assure remunerative prices to farmers for notified pulses, oilseeds and copra at a Minimum Support Price (MSP) set at not less than 150% of the cost of production. PM-AASHA was made a continuing scheme by the Cabinet Committee on Economic Affairs in September 2024, folding in the Market Intervention Scheme (MIS) and Price Stabilisation Fund (PSF) components from FY 2025-26 with a financial outlay of ₹35,000 crore for the balance of the 15th Finance Commission cycle.

What are the three components of PM-AASHA and how do they differ?

PM-AASHA has three pillars. The Price Support Scheme (PSS) involves physical procurement of pulses, oilseeds and copra at MSP by central nodal agencies — NAFED, FCI and SFAC — through state governments and cooperatives, triggered when the market price falls below MSP on a state-government request. The Price Deficiency Payment Scheme (PDPS) makes a direct cash payment of the gap between MSP and the weighted-average modal market price during a notified procurement period for notified oilseeds, with no physical procurement; the state must opt in. The Private Procurement & Stockist Scheme (PPSS) is a pilot allowing selected private agencies to procure oilseeds at MSP in notified districts, with a service charge of up to 15% of MSP reimbursed by the centre.

Which crops are covered by MSP and which of those does PM-AASHA procure?

There are 24 notified crops with MSP — 7 cereals (paddy, wheat, maize, jowar, bajra, ragi, barley), 5 pulses (gram, tur / arhar, urad, moong, masur / lentil), 7 oilseeds (groundnut, soyabean, sunflower, sesamum, niger, safflower, rapeseed-mustard) and 4 commercial crops (cotton, jute, sugarcane, copra). PM-AASHA's procurement focus is on pulses, oilseeds and copra — cereals such as paddy and wheat are procured under the broader Food Corporation of India open-ended procurement system for the central pool, and sugarcane is governed by the Fair & Remunerative Price (FRP) under the Sugarcane (Control) Order, 1966.

What is MSP and how is it calculated?

Minimum Support Price (MSP) is the floor price at which the government commits to procure notified crops from farmers. It is announced each season by the Government of India on the recommendation of the Commission for Agricultural Costs and Prices (CACP). Since 2018-19, MSP is fixed at a level not less than 150% of the A2+FL cost of production — that is, all paid-out costs (A2) such as seed, fertiliser, hired labour, machinery, fuel and irrigation, plus the imputed value of family labour (FL). This 50% margin over A2+FL is the policy benchmark cited in successive Union budgets and Cabinet decisions.

How is the Price Deficiency Payment (PDPS) settlement computed?

Under PDPS, no physical procurement takes place. For each notified oilseed in a state that has opted in, the deficiency is computed as MSP minus the weighted-average modal market price prevailing in notified APMC mandis during the notified procurement period. The deficiency, subject to a ceiling that varies by notification, is paid directly to the registered farmer's Aadhaar-linked bank account through DBT, based on the quantity actually sold in registered mandis on the strength of mandi-issued sale slips.

What is the role of NAFED, FCI and SFAC under PM-AASHA?

The National Agricultural Cooperative Marketing Federation of India (NAFED) is the principal procurement agency for pulses and oilseeds under PSS; it opens procurement centres in coordination with state governments and cooperatives. The Food Corporation of India (FCI) plays a complementary role on selected crops and logistics. The Small Farmers' Agri-Business Consortium (SFAC) handles procurement in specific states and crops, particularly where state co-operative federations require operational support. State-level monitoring committees ratify procurement dates, quality norms and price triggers.

How much of a state's production can be procured under PM-AASHA?

Operational guidelines cap procurement at up to 25% of the production of the notified crop in a state. The Union Cabinet has, on occasion, approved special enhancements to 40% in particular seasons for specific pulses and oilseeds when distress was acute. The ceiling protects fiscal and storage capacity while ensuring meaningful market intervention; the exact share applicable for a season is fixed in the Cabinet / DAFW notification for that crop.

How is PM-AASHA different from the Fair & Remunerative Price (FRP) for sugarcane?

PM-AASHA's price support applies to notified pulses, oilseeds and copra and operates through Cabinet-approved MSP and the PSS / PDPS / PPSS instruments. Sugarcane is not part of PM-AASHA's procurement basket — it is governed by the Fair & Remunerative Price (FRP) declared by the central government under the Sugarcane (Control) Order, 1966, with a statutory obligation on sugar mills to pay at least the FRP to cane farmers within 14 days of delivery. Several state governments also notify a higher State Advised Price (SAP). Procurement therefore happens directly from the mill to the farmer rather than through a central nodal agency.

PM-AASHA Guide — Pradhan Mantri Annadata Aay SanraksHan Abhiyan: PSS, PDPS, PPSS, MSP Coverage & ₹35,000 Crore Continuation

PM-AASHA (Pradhan Mantri Annadata Aay SanraksHan Abhiyan)is the Government of India's umbrella price-support scheme, launched in September 2018by the Union Cabinet under the Department of Agriculture, Cooperation & Farmers Welfare (now the Department of Agriculture & Farmers Welfare, DAFW). It is designed to assure remunerative prices to farmers for notified pulses, oilseeds and copra at a Minimum Support Price (MSP) fixed at not less than 150% of the A2+FL cost of production. PM-AASHA is part of India's larger portfolio of farmer schemes — see our India government schemes for farmers overview for the wider context, and pair this price-support guide with our MSP deep-dive that explains the CACP A2+FL formula and the 22 notified crops, the income-support deep-dive on PM-KISAN, and the price-discovery counterpart, the e-NAM National Agriculture Market.

At a glance

Scheme type: central-sector umbrella price-support scheme combining physical procurement, deficiency payment and private procurement instruments.
Launched: September 2018 by the Union Cabinet; made a continuing scheme by the Cabinet Committee on Economic Affairs in September 2024.
Outlay (2024 continuation): ₹35,000 crore for the balance of the 15th Finance Commission cycle from FY 2025-26, with the Market Intervention Scheme (MIS) and Price Stabilisation Fund (PSF) folded in.
Components: Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Private Procurement & Stockist Scheme (PPSS).
Coverage: notified pulses, oilseeds and copra — MSP itself covers 24 notified crops across cereals, pulses, oilseeds and commercial crops.
Procurement cap: up to 25% of state production of the notified crop, raised to 40% in specific seasons by special Cabinet approval.
Principal agencies: NAFED (lead for pulses and oilseeds), FCI (complementary role), SFAC and state co-operative federations.
Portals: agriwelfare.gov.in, nafed-india.com, enam.gov.in.

The three components

Price Support Scheme (PSS)

PSS is the physical procurement arm of PM-AASHA. When the prevailing market price for a notified pulse, oilseed or copra crop falls below MSP, the concerned state government requests procurement and central nodal agencies — primarily NAFED, with FCI and SFAC in supporting roles — open procurement centres at state APMC mandis and Primary Agricultural Cooperative Society (PACS) collection points. Farmers register through the procurement portal (typically e-NAM-linked) or with their local PACS, present land records and an Aadhaar-linked bank account, and deliver produce against quality grading at the MSP. Payment is released via Direct Benefit Transfer (DBT) with a scheme target of 72 hours from procurement.

Price Deficiency Payment Scheme (PDPS)

PDPS is the cash-payment arm. The state opts in for a notified oilseed; instead of physical procurement, the centre pays the gap between MSP and the weighted-average modal market priceprevailing in notified APMC mandis during the notified procurement period, subject to a notification-specific ceiling. Payment is made to the registered farmer's Aadhaar-linked bank account through DBT, against mandi-issued sale slips for produce actually sold in registered mandis. PDPS reduces the storage and handling burden on the state but requires reliable mandi price reporting.

Private Procurement & Stockist Scheme (PPSS)

PPSS is a pilot that allows selected private agencies to procure notified oilseeds at MSP in notified districts. The centre reimburses a service charge of up to 15% of MSPto the empanelled private player against verified procurement. PPSS broadens the procurement footprint into districts where state cooperatives are thin on the ground and provides a parallel procurement channel without expanding NAFED's own centre network.

MSP — what it covers and how it's set

MSP is the Cabinet-approved floor price at which the government commits to procure notified crops from farmers. It is announced each season on the recommendation of the Commission for Agricultural Costs and Prices (CACP), a statutory body — see our CACP deep-dive for the full A2 / A2+FL / C2 methodology and the Kharif and Rabi price policy report cycle. Since the Union Budget 2018-19, MSP has been benchmarked at not less than 150% of the A2+FL cost of production — that is, all paid-out costs (A2: seed, fertiliser, hired labour, machinery, fuel, irrigation) plus the imputed value of family labour (FL). MSP today covers 24 notified crops:

7 cereals: paddy, wheat, maize, jowar, bajra, ragi, barley.
5 pulses: gram, tur / arhar, urad, moong, masur (lentil).
7 oilseeds: groundnut, soyabean, sunflower, sesamum, niger, safflower, rapeseed-mustard.
4 commercial crops: cotton, jute, sugarcane and copra.

PM-AASHA's procurement focus is on pulses, oilseeds and copra. Paddy and wheat are procured under the Food Corporation of India's open-ended procurement for the central pool rather than through PM-AASHA. Sugarcane is governed by a separate statutory instrument — the Fair & Remunerative Price (FRP) under the Sugarcane (Control) Order, 1966 — with a 14-day mill-payment obligation and frequent State Advised Prices (SAP) on top.

The 2024 continuation and the ₹35,000 crore outlay

In September 2024, the Cabinet Committee on Economic Affairs decided to continue PM-AASHA as a unified umbrella scheme and to fold in the Market Intervention Scheme (MIS) — used for non-MSP perishables such as onion and tomato — and the Price Stabilisation Fund (PSF) — used to manage buffer stocks of pulses and onions for consumer-price stabilisation — from FY 2025-26. A combined financial outlay of ₹35,000 crore was approved for the balance of the 15th Finance Commission cycle. The unification simplifies budgeting, gives the centre a single instrument for both producer-side (MSP / PSS / PDPS / PPSS) and consumer-side (PSF) price interventions, and brings perishable horticulture (MIS) under the same umbrella.

Operational mechanics

Procurement trigger: activated when the wholesale market price for a notified crop falls below MSP and the state government formally requests procurement.
Procurement ceiling: up to 25% of the production of the notified crop in the state, raised to 40% in specific seasons under special Cabinet approval.
Procurement agencies: NAFED is the principal agency for pulses and oilseeds; FCI plays a complementary role; SFAC and state co-operative federations procure in specific states and crops.
Quality grading: Fair Average Quality (FAQ) norms apply at procurement centres; off-grade produce is rejected or accepted with a price cut as per scheme notification.
Payment SLA: Direct Benefit Transfer (DBT) to the Aadhaar-linked bank account, target within 72 hours of procurement.
State-level monitoring: committees ratify procurement dates, quality norms, mandi inclusion and price triggers; PDPS opts-in are recorded crop-by-crop.

How farmers benefit and apply

Identify the eligible crop and route: confirm that the crop is a notified pulse, oilseed or copra under PM-AASHA in the current season, and check whether the state has opted in to PSS, PDPS or PPSS for that crop.
Register at the procurement centre: visit the state government procurement centre, the APMC mandi or the local Primary Agricultural Cooperative Society (PACS); register on the e-NAM-linked procurement portal where applicable.
Documents required: land records or tenancy proof, Aadhaar, an Aadhaar-linked bank account for DBT, and the recent mandi sale slip in the case of PDPS.
Deliver produce against quality grading at the procurement centre; for PDPS, sell at the registered APMC mandi during the notified procurement period.
Payment via DBT: the procurement agency or the centre transfers the MSP amount (PSS / PPSS) or the deficiency (PDPS) directly to the farmer's Aadhaar-linked bank account, with a 72-hour SLA target.
Grievance redressal: escalate first to the procurement centre supervisor and the state-level monitoring committee; the DAFW and NAFED grievance modules at agriwelfare.gov.in and nafed-india.com are the central escalation routes.

Convergence with other farmer schemes

PM-AASHA addresses the price side of farmer income. It works alongside, and is designed to be stacked with, several other instruments:

PM-KISAN — direct income support of ₹6,000 per year to landholding farmer families pairs naturally with price support for harvested produce.
e-NAM — the National Agriculture Market is the price-discovery counterpart; PM-AASHA procurement is often routed through e-NAM-integrated APMC mandis.
PMFBY — crop insurance protects against yield shocks; combined with PM-AASHA price support it gives end-to-end income certainty for the season.
Market Intervention Scheme (MIS) — for non-MSP perishables such as onion and tomato; folded into PM-AASHA from FY 2025-26.
Operation Greens — value-chain support for tomato, onion and potato; complements MIS for perishables.
Crop calendar — see our India crop calendar to align procurement windows with sowing and harvest schedules across Kharif and Rabi.

Common reasons procurement claims stall

Crop not notified in the state for the current season — PM-AASHA is opt-in by state and crop; absence of a notification means no procurement centres are opened.
Quality below FAQ norms — off-grade produce is rejected at the procurement centre or accepted with a price cut as per the notification.
Bank account not Aadhaar-linked — DBT will fail; farmers should seed Aadhaar with their bank account before procurement.
PDPS sale slips missing — without mandi-issued sale slips the deficiency payment cannot be computed or released.
Procurement-cap exhausted — once the 25% (or 40% special) ceiling on state production is reached, further procurement requires a Cabinet enhancement.
Late registration — registration after the notified procurement window has closed.

Related farmer-welfare programmes

Pair PM-AASHA price support with PM-KISAN income support, PMFBY crop insurance and e-NAM for price discovery. For working-capital drawings against the harvested crop, see our Kisan Credit Card deep-dive; for post-harvest value addition and food processing, see the PMFME guide. For the perishable side — tomato, onion, potato and 19 other fruits and vegetables — the 50% transport and storage subsidy under Operation Greenscomplements PM-AASHA's price-support architecture by de-risking the glut-and-bust logistics of TOP and TOTAL crops. Crop-specific procurement windows and grading norms are catalogued in our India crop calendar, and the knowledge base carries advisories on grading, drying and post-harvest handling that affect procurement acceptance.

References

agriwelfare.gov.in — Department of Agriculture & Farmers Welfare (DAFW): scheme guidelines, MSP notifications and state-wise procurement progress.
nafed-india.com — National Agricultural Cooperative Marketing Federation of India: PSS procurement updates and centre listings.
enam.gov.in — e-NAM National Agriculture Market: registration of farmers, FPOs and traders, mandi price reporting.
Press Information Bureau (PIB) — September 2018 Cabinet announcement of PM-AASHA and September 2024 Cabinet Committee on Economic Affairs continuation decision are the authoritative press references.
State agriculture & cooperation departments and state co-operative federations — first port of call for PSS / PDPS / PPSS season-specific notifications, PACS lists and grievance redressal.

Frequently asked questions

What is PM-AASHA and which ministry runs it?: Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) is an umbrella price-support scheme launched in September 2018 by the Union Cabinet under the Department of Agriculture, Cooperation & Farmers Welfare (now the Department of Agriculture & Farmers Welfare, DAFW). It is designed to assure remunerative prices to farmers for notified pulses, oilseeds and copra at a Minimum Support Price (MSP) set at not less than 150% of the cost of production. PM-AASHA was made a continuing scheme by the Cabinet Committee on Economic Affairs in September 2024, folding in the Market Intervention Scheme (MIS) and Price Stabilisation Fund (PSF) components from FY 2025-26 with a financial outlay of ₹35,000 crore for the balance of the 15th Finance Commission cycle.
What are the three components of PM-AASHA and how do they differ?: PM-AASHA has three pillars. The Price Support Scheme (PSS) involves physical procurement of pulses, oilseeds and copra at MSP by central nodal agencies — NAFED, FCI and SFAC — through state governments and cooperatives, triggered when the market price falls below MSP on a state-government request. The Price Deficiency Payment Scheme (PDPS) makes a direct cash payment of the gap between MSP and the weighted-average modal market price during a notified procurement period for notified oilseeds, with no physical procurement; the state must opt in. The Private Procurement & Stockist Scheme (PPSS) is a pilot allowing selected private agencies to procure oilseeds at MSP in notified districts, with a service charge of up to 15% of MSP reimbursed by the centre.
Which crops are covered by MSP and which of those does PM-AASHA procure?: There are 24 notified crops with MSP — 7 cereals (paddy, wheat, maize, jowar, bajra, ragi, barley), 5 pulses (gram, tur / arhar, urad, moong, masur / lentil), 7 oilseeds (groundnut, soyabean, sunflower, sesamum, niger, safflower, rapeseed-mustard) and 4 commercial crops (cotton, jute, sugarcane, copra). PM-AASHA's procurement focus is on pulses, oilseeds and copra — cereals such as paddy and wheat are procured under the broader Food Corporation of India open-ended procurement system for the central pool, and sugarcane is governed by the Fair & Remunerative Price (FRP) under the Sugarcane (Control) Order, 1966.
What is MSP and how is it calculated?: Minimum Support Price (MSP) is the floor price at which the government commits to procure notified crops from farmers. It is announced each season by the Government of India on the recommendation of the Commission for Agricultural Costs and Prices (CACP). Since 2018-19, MSP is fixed at a level not less than 150% of the A2+FL cost of production — that is, all paid-out costs (A2) such as seed, fertiliser, hired labour, machinery, fuel and irrigation, plus the imputed value of family labour (FL). This 50% margin over A2+FL is the policy benchmark cited in successive Union budgets and Cabinet decisions.
How does a farmer sell under the Price Support Scheme (PSS)?: When the market price for a notified pulse, oilseed or copra crop falls below MSP, the concerned state government requests procurement and the central nodal agency — typically NAFED for pulses and oilseeds, with FCI playing a complementary role — opens procurement centres at state agricultural produce market committee (APMC) mandis or Primary Agricultural Cooperative Society (PACS) collection points. Farmers register on the procurement portal (often eNAM-linked) or directly with PACS, present their land records and Aadhaar-linked bank account, and deliver their produce against quality grading. Payment is released via Direct Benefit Transfer (DBT) to the Aadhaar-linked bank account, with the scheme target of release within 72 hours of procurement.
How is the Price Deficiency Payment (PDPS) settlement computed?: Under PDPS, no physical procurement takes place. For each notified oilseed in a state that has opted in, the deficiency is computed as MSP minus the weighted-average modal market price prevailing in notified APMC mandis during the notified procurement period. The deficiency, subject to a ceiling that varies by notification, is paid directly to the registered farmer's Aadhaar-linked bank account through DBT, based on the quantity actually sold in registered mandis on the strength of mandi-issued sale slips.
What is the role of NAFED, FCI and SFAC under PM-AASHA?: The National Agricultural Cooperative Marketing Federation of India (NAFED) is the principal procurement agency for pulses and oilseeds under PSS; it opens procurement centres in coordination with state governments and cooperatives. The Food Corporation of India (FCI) plays a complementary role on selected crops and logistics. The Small Farmers' Agri-Business Consortium (SFAC) handles procurement in specific states and crops, particularly where state co-operative federations require operational support. State-level monitoring committees ratify procurement dates, quality norms and price triggers.
How much of a state's production can be procured under PM-AASHA?: Operational guidelines cap procurement at up to 25% of the production of the notified crop in a state. The Union Cabinet has, on occasion, approved special enhancements to 40% in particular seasons for specific pulses and oilseeds when distress was acute. The ceiling protects fiscal and storage capacity while ensuring meaningful market intervention; the exact share applicable for a season is fixed in the Cabinet / DAFW notification for that crop.
What changed with the 2024 continuation and ₹35,000 crore outlay?: In September 2024, the Cabinet Committee on Economic Affairs decided to continue PM-AASHA as a unified umbrella scheme and to fold in the Market Intervention Scheme (MIS) — used for non-MSP perishables such as onion and tomato — and the Price Stabilisation Fund (PSF) — used to manage buffer stocks of pulses and onions for consumer-price stabilisation — from FY 2025-26. A combined financial outlay of ₹35,000 crore was approved for the balance of the 15th Finance Commission cycle. This unification simplifies budgeting, gives the centre a single instrument for both producer-side (MSP / PDPS / PSS / PPSS) and consumer-side (PSF) price interventions, and brings perishable horticulture (MIS) under the same umbrella.
How is PM-AASHA different from the Fair & Remunerative Price (FRP) for sugarcane?: PM-AASHA's price support applies to notified pulses, oilseeds and copra and operates through Cabinet-approved MSP and the PSS / PDPS / PPSS instruments. Sugarcane is not part of PM-AASHA's procurement basket — it is governed by the Fair & Remunerative Price (FRP) declared by the central government under the Sugarcane (Control) Order, 1966, with a statutory obligation on sugar mills to pay at least the FRP to cane farmers within 14 days of delivery. Several state governments also notify a higher State Advised Price (SAP). Procurement therefore happens directly from the mill to the farmer rather than through a central nodal agency.

MSP rates, procurement ceilings, opt-in notifications and the PSS / PDPS / PPSS mix above summarise publicly available PM-AASHA operational guidelines on agriwelfare.gov.in, NAFED procurement notes on nafed-india.com, and PIB releases dated September 2018 and September 2024. Crop coverage, procurement caps and price triggers are revised season-by-season; farmers should verify current terms with their state agriculture / cooperation department, the local APMC mandi or PACS before delivering produce or claiming a deficiency payment.