Government Extends Soyabean and Groundnut Procurement Periods

The Government of India has recently extended the procurement periods for soyabean and groundnut in several states to support farmers. This decision aims to protect their interests during the Kharif 2024-25 season. The extensions vary by state, with Maharashtra and Telangana receiving increases in procurement time. This initiative is part of a broader strategy to ensure fair prices for farmers and enhance domestic agricultural production.

Procurement Details for Soyabean

The government has approved the procurement of soyabean under the Price Support Scheme (PSS) across multiple states including Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, and Telangana. As of February 9, 2025, approximately 19.99 lakh tonnes of soyabean have been procured, benefiting over 846,000 farmers. The procurement period in Maharashtra has been extended by 24 days, while Telangana’s has been extended by 15 days.

Procurement Details for Groundnut

Similarly, groundnut procurement has been extended in Gujarat by six days and in Karnataka by 25 days. The PSS has facilitated the procurement of 15.73 lakh tonnes of groundnut, aiding around 475,000 farmers across states like Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Karnataka, Rajasthan, and Uttar Pradesh.

Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) Scheme

The PM-AASHA Scheme continues to play important role in the procurement process. It encompasses various components like the PSS, Price Deficiency Payment Scheme (PDPS), Market Intervention Scheme (MIS), and Price Stabilisation Funds (PSF). The Department of Agriculture & Farmers’ Welfare oversees PSS, PDPS, and MIS, while the Department of Consumer Affairs manages the PSF. This scheme aims to provide farmers with remunerative prices and stabilise market prices of essential commodities.

Enhancing Domestic Production of Pulses

To boost domestic pulse production, the government has allowed the procurement of tur, urad, and masur under PSS at 100% of state production for the 2024-25 procurement year. This initiative is part of a long-term strategy to achieve self-sufficiency in pulses, as announced in the recent Budget.

Importance of Procurement Schemes

These procurement schemes are vital for ensuring farmers receive fair prices for their crops. They also help mitigate price volatility in essential commodities. By extending procurement periods, the government aims to support farmers during challenging market conditions and enhance food security.

Future of Agricultural Support in India

The continued support through the PM-AASHA Scheme during the 15th Finance Commission Cycle until 2025-26 indicates the government’s commitment to improving the agricultural sector. This initiative is expected to encourage more farmers to participate in the formal market, thereby increasing overall agricultural productivity.

Questions for UPSC:

1. Critically analyse the impact of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan on farmers’ income levels.
2. What is the significance of extending procurement periods for soyabean and groundnut? How does it affect market stability?
3. Estimate the potential benefits of achieving self-sufficiency in pulses for India’s agricultural economy.
4. Point out the key differences between the Price Support Scheme and the Price Deficiency Payment Scheme in India.

Answer Hints:

1. Critically analyse the impact of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan on farmers’ income levels.

1. PM-AASHA aims to provide remunerative prices to farmers, directly impacting their income levels.
2. It encompasses various schemes like PSS, PDPS, and MIS, which collectively enhance income stability.
3. Farmers benefit from price support during market fluctuations, reducing income volatility.
4. The scheme encourages more farmers to sell in formal markets, potentially increasing total income.
5. Long-term support through PM-AASHA encourages agricultural growth, further enhancing income prospects.

2. What is the significance of extending procurement periods for soyabean and groundnut? How does it affect market stability?

1. Extensions protect farmers’ interests during critical harvesting periods, ensuring they receive fair prices.
2. They help mitigate market saturation, allowing time for better price realization for farmers.
3. Extended periods reduce price volatility by stabilizing supply and demand dynamics in the market.
4. Farmers are less pressured to sell at lower prices, promoting overall market confidence.
5. This proactive approach supports food security by ensuring a steady supply of essential commodities.

3. Estimate the potential benefits of achieving self-sufficiency in pulses for India’s agricultural economy.

1. Self-sufficiency reduces dependency on imports, saving foreign exchange and enhancing national security.
2. It encourages domestic production, leading to increased farmer incomes and rural employment.
3. Stable pulse prices can benefit consumers, making essential food items more affordable.
4. Greater self-sufficiency can improve agricultural diversification and resilience against market shocks.
5. Increased pulse production contributes to better nutrition and food security for the population.

4. Point out the key differences between the Price Support Scheme and the Price Deficiency Payment Scheme in India.

1. PSS involves direct procurement of crops at a fixed Minimum Support Price (MSP) from farmers.
2. PDPS compensates farmers when market prices fall below the MSP, ensuring income protection.
3. PSS requires physical sale of produce, while PDPS allows farmers to sell in open markets.
4. PSS is implemented through central nodal agencies, while PDPS is administered by state governments.
5. PSS helps in stock management, whereas PDPS focuses on income stabilization during price dips.