- Price Support Scheme (PSS): When market prices of notified pulses, oilseeds and copra fall below MSP, government agencies such as NAFED and NCCF procure the produce directly from eligible farmers at MSP.
- Price Deficiency Payment Scheme (PDPS): Farmers receive the difference between MSP and the actual selling or modal price, mainly for notified oilseeds. No physical procurement is required under this component.
- Price Stabilisation Fund (PSF): It is used to manage price volatility of essential commodities and help keep prices affordable for consumers.
- Market Intervention Scheme (MIS): It supports growers of perishable agricultural and horticultural commodities for which MSP is not announced when prices crash due to excess production.
- Digital systems such as Aadhaar authentication, e-NAM, e-Samriddhi and e-Samyukti are being used to improve transparency and efficiency in procurement.
- The overall objective is to prevent distress sales, stabilise farmers’ income and maintain affordable prices for consumers.
Question
Q1. Which component of PM-AASHA provides direct payment of the difference between MSP and the selling price to eligible farmers?a) Price Support Scheme
b) Price Deficiency Payment Scheme
c) Market Intervention Scheme
d) Price Stabilisation Fund
Answer: b) Under the Price Deficiency Payment Scheme (PDPS), eligible farmers receive the difference between the MSP and the selling or modal price without physical procurement of the crop.
