PM-AASHA Scheme 2026: Budget Allocation, MSP Benefits and Components
The PM-AASHA Scheme, a central governmnet initiative, aims to ensure remunerative prices for farmers and strengthen agricultural pricing with a ₹7,200 crore budget for 2026-27. It includes PSS, PDPS, and MIS components and offering MSP benefits.
The Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) is a central government initiative to provide profit to farmers and strengthen the agricultural pricing system. The government estimates ₹7,200 crores to be spent on PM-AASHA in 2026-27.
The Price Support Scheme (PSS) enables the government to procure notified pulses, oilseeds and copra at the Minimum Support Price (MSP) whenever market prices drop below the officially stated MSP, subject to the provisions of the Programme.
PM AASHA Scheme 2026 Latest Updates
The Central Government has sanctioned ₹7,200 crore to facilitate robust price-support interventions and procurement schemes in FY 2026-27. New policy initiatives clearly suggest that the government is intrested on advancing transparency through several IT initiatives such as Aadhaar-linked inclusion, the e-NAM system, and portals like e-Samriddhi and e-Samyukti.
To enhance local pulse manufacturing and lower import reliance, the government announced that it will allow up to 100% purchase of Tur, Urad and Masur from certified farmers via appropriate government organizations.
What is the PM-AASHA Scheme?
The Prime Minister AASHA program was introduced in September 2018 to provide a economic safeguard to Indian farmers. It is an umbrella scheme designed to ensure remunerative prices to farmers for their produce, moving from mere price declaration to concrete price assurance. The Ministry of Agriculture and Farmers Welfare is nodel implementing agency.
The scheme is aimed at preventing the sale of crops by farmers at unreasonably low prices when the open-market prices go below the officially determined MSP during peak harvest time.
The initiative helps in closing important loopholes in agricultural marketing and procurement, thereby allowing the farmers to get the requisite compensation and helping in stabilizing food prices for the consumers in the long run.
Objectives of PM AASHA
The PM-AASHA initiative is not just based on several goals which are aimed to transformation agricultural system in India and creating a particular agricultural system.
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Ensuring Remunerative Prices: To provide farmers with satisfactory profit based on the government’s official MSP
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Mitigating Distress Sales: To prevent farmers from selling their crops at almost no profit during sudden market crashes
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Strengthening the Procurement Infrastructure: To improve mechanisms of procurement, both electronic and physical.
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Balancing Producer and Consumer Interests: To protect the farmers as well as society through reasonable market changes in prices and market interventions.
Components of PM AASHA Scheme
According to the present definition made by officials of the government, PSS, PDPS, and MIS comprise the main ingredients of the integrated PM-AASHA initiative, which means:
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Price Support Scheme (PSS)
The PSS involves the role of central nodal agencies like the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and National Cooperative Consumers' Federation of India Ltd. (NCCF) and state agencies, where eligible pulses, oilseeds, and copra are procured from registered farmers at the minimum price which is announced as MSP.
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Price Deficiency Payment Scheme (PDPS)
In PDPS, the harvest of farmers will not be purchased. Rather, farmers will be compensated for the difference between the MSP and the price prevailing in the appropriate market, up to 15 percent of the MSP amount, credited into their bank account.
This is mostly used for oilseeds and obviates the necessity of establishing huge purchases-related facilities, allowing for market sales as well as providing MSP safeguards for farmers.
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Market Intervention Scheme (MIS)
The Market Intervention Scheme (MIS) is a program launched to procure different types of perishable agricultural and horticultural products. It covers products like tomatoes, onions and potatoes that do not come under Minimum Support Price. Under the MIS, the intervention is triggered when the market price drops by 10% or more over the normal season's rates.
The different operations involved in the MIS are shared between Central and State governments based on a cost-sharing arrangement. The operation of MIS comes to great assistance during times of surplus production.
What are the MSP benefits under PM AASHA?
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Direct Bank Transfers (DBT): Payments are effectively made to the authenticated bank accounts that are linked to the title document, thus eradicating the need for costly middlemen.
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Guaranteed Floor Price: The farmers are assured of one agreed minimum price before the commencement of any sowing or harvesting work
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Extended Procurement Timings: Initial procurement restrictions can be effectively lifted through the cooperative processes of authorization, including maximum absorption.
Which Crops are covered under PM AASHA?
The scheme is mainly aimed at procuring adequate stock for and providing proper price support to the much-needed non-perishable commodities such as:
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Pulses: Tur, Urad, Masur, Moong, and Chana; Oilseeds: Groundnut, mustard, soybean, sunflower, sesame, nigerseed, and safflower.
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Commercial/Other Crops: Copra and other select perishable/not thorough MSP scheme crops taken care of by the MIS.
The Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) continues to be a key component of India's agricultural policy by linking market fluctuations to the protection of farmers' livelihoods. The programme is thus able to combine the elements of procurement, direct compensation of income and digital instruments within the sizeable budget allocation of ₹7,200 crore for 2026-27, thus enabling farmers to secure their investment and ensure food security in the future.
Manisha Waldia is a distinguished content strategist with 5 years of experience crafting premium educational content for UPSC and State PCS, with a focus on deep conceptual analysis across Polity, Geography, History, and Environment. She currently brings this expertise to Jagran Josh, where she covers major national and international events, current affairs, and static general knowledge. Over her career, Manisha's specialized insights have led her to curate high-impact materials and serve as a UPSC Mains answer-evaluator for India’s top institutes—including Drishti IAS, Shubhra Ranjan IAS, Study IQ, GS Score, and PWonlyIAS. She has also worked alongside leading NGOs like Oxfam India and Avani Kumaon.
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