Union Cabinet okays schemes aiding farm output

New Delhi: In a major boost to the agriculture sector in India, the Union Cabinet on Wednesday approved continuation of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) scheme, with an outlay of Rs 35,000 crore, which will provide a big relief to farmers with better prices and control price volatility of essential commodities for consumers as well. Besides, the Cabinet also approved a unified biotechnology scheme with an outlay of over Rs 9,000 crore, aiming to foster innovation and promote bio-entrepreneurship in bio-manufacturing.

The central government has converged the Price Support Scheme (PSS) and Price Stabilisation Fund (PSF) schemes in PM-AASHA to serve the farmers and consumers more efficiently. Apart from the PSS and PSF schemes, the PM-AASHA will now have the components of Price Deficit Payment Scheme (POPS) and Market Intervention Scheme (MIS) as well. “The total financial outgo would be Rs 35,000 crore during the 15th Finance Commission Cycle up to 2025-26,” the government said in an official statement.

The PM-AASHA is an umbrella scheme to ensure minimum support price or MSP to the farmers across the country. “The Integrated scheme of PM-AASHA will bring in more effectiveness in the implementation which would not only help in providing remunerative prices to the farmers for their produce but also control the price volatility of essential commodities by ensuring their availability at affordable prices to consumers,” the government said.

Under the PSS scheme, the procurement of notified pulses, oilseeds and copra at MSP would be 25 percent of national production from 2024-25 seasons onwards. This would enable states to procure more of these crops at MSP from farmers to prevent distress sale. “However, this ceiling will not be applicable in case of tur, urad and masoor for 2024-25 season as there will be a 100 per cent procurement of tur, urad and masoor during the 2024-25 season as decided earlier,” the government said.

The Centre has also renewed and enhanced the existing government guarantee to Rs 45,000 crore for procurement of notified pulses, oilseeds and copra at MSP. This will help in more procurement of pulses, oilseeds & copra whenever prices fall below MSP in the market. The purchases will be undertaken by the department of agriculture from farmers at MSP including pre-registered farmers on eSamridhi portal of NAFED and eSamyukti portal of NCCF.

Meanwhile, the Union Cabinet also approved a unified biotechnology scheme ‘biotechnology research innovation and entrepreneurship development’ or Bio-RIDE, with an outlay of Rs 9,197 crore, aiming to boost India's biotechnology sector. The scheme will foster innovation, promote bio-entrepreneurship, and position India as a global leader in biomanufacturing. The proposed outlay will be implemented during the 15th Finance Commission period from 2021-22 to 2025-26.

“The approval of the Bio-RIDE scheme marks a significant step forward in India’s mission to harness biotechnology for addressing national and global challenges. This initiative will play a key role in advancing research, driving product development, and bridging the gap between academic research and industrial applications,” Union Minister Ashwini Vaishnaw told the media after the Cabinet meeting.

“The Bio-RIDE scheme will also nurture a thriving ecosystem for start-ups by providing seed funding, incubation support, and mentorship to bio-entrepreneurs. This will create synergies between academic institutions, research organisations, and industries to accelerate the commercialisation of bio-based products and technologies,” the minister added.