In a significant move to bolster agricultural support, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a provisional subsidy of ₹24,475.53 crore for nutrient-based phosphatic and potassic (P&K) fertilizers for the upcoming rabi or winter-sown season. The cabinet also sanctioned fresh allocations for the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) scheme, designed to stabilize farm incomes.
The nutrient-based subsidy program provides 28 grades of P&K fertilizers to farmers at subsidized prices, sourced through manufacturers and importers. This initiative aims to make fertilizers more affordable and discourage their overuse by pricing them below market rates. The government reimburses manufacturers for the discounted price, ensuring that farmers benefit from reduced costs.
Additionally, the cabinet approved an outlay of ₹35,000 crore for PM-AASHA, which will be allocated throughout the 15th Finance Commission period, including the fiscal year 2025-26. Launched in 2018, PM-AASHA comprises three sub-schemes that enable state governments to purchase farm produce, such as pulses and oilseeds, when market prices fall below government-set floor prices. This mechanism is designed to protect farmers from market volatility and ensure a stable income.
The enhanced budget for PM-AASHA marks a significant increase from previous years. In the fiscal year 2023-24, the scheme was allocated ₹2,200 crore, but the revised estimates provided only ₹1 lakh, falling short of expectations. The 2022-23 fiscal year saw no spending or allocation under the scheme. The new provisions integrate the price support scheme (PSS) and price stabilization fund (PSF) to enhance the effectiveness of PM-AASHA and stabilize essential commodity prices.
Sources By Agencies
