News Excerpt:

The centre asserts ample pulse stocks under the Price Support Scheme ( PSS) scheme for market intervention. It is considering restructuring PSS and Price Stabilization Fund to improve inventory and procurement management for effective market price control.

More about news:

• The PSS became part of the broader PM-AASHA scheme in September 2018.
• Under the revised PSS, the overall procurement quantity by the Central Government is restricted to 25% of the actual production of the commodity for that particular season.
• Now, both the PSS and PSF cater to the needs of farmers to get a remunerative price and shield consumers from excessive speculation.
• A move has been initiated to bring PSF back into the agriculture ministry.
• The Standing Committee of Parliament recently recommended bringing the PSF and PSS under one roof.

Pradhan Mantri Annadata Aay SanraksHan Abhiyan’ (PM-AASHA)

• Pradhan Mantri Annadata Aay SanraksHan Abhiyan’ (PM-AASHA) is an umbrella scheme to ensure a Minimum Support Price (MSP) for farmers.
• It comprises the erstwhile Price Support Scheme (PSS) with certain modifications and the rolling out of new schemes of the Price Deficiency Payment Scheme (PDPS) and the pilot of the Private Procurement and Stockist Scheme (PPSS).
• Under PM-AASHA, states/UTs can choose either PSS or PDPS in a given procurement season concerning a particular oilseed crop for the entire state.
• Pulses and Copra are procured under PSS. Only one scheme, i.e. PSS or PDPS, may be made operational in one State with respect to one commodity.

Price Support Scheme (PSS)

• The PSS or Price Support Scheme (PSS) is over three decades old and comes under the Agriculture Ministry.
• Under it, the government, through a central agency, undertakes procurement of agricultural commodities like pulses, oilseeds and copra at minimum support prices to ensure adequate returns to farmers.
•  The scheme is implemented in collaboration with the state governments.
•  PSS became part of the broader PM-AASHA scheme in September 2018.

Price Stabilization Fund (PSF)

• The Price Stabilization Fund (PSF) was established in 2014-15 under the Ministry of Agriculture to help regulate the price volatility of important agri and horticultural commodities like onions, potatoes and pulses.
• However, on April 1, 2016, the PSF was transferred to the Department of Consumer Affairs.
• The scheme provides for maintaining a strategic buffer of aforementioned commodities for subsequent calibrated release to moderate price volatility and discourages hoarding and unscrupulous speculation.
• The scheme promotes direct purchases from farmers at the farm gates or mandi for building such stock.
• The Department of Consumer Affairs operates the Price Stabilization Fund.