The Government of India has introduced the Price Deficiency Payment Scheme (PDPS) to support farmers’ incomes and ensure they receive fair prices for their crops. This initiative aims to bridge the gap between the minimum support price (MSP) and the market price by providing financial assistance directly to farmers. Unlike the traditional method of purchasing crops, this scheme allows for direct fund transfers to farmers’ bank accounts.
PDPS is a key component of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA), which combines various programs to enhance farmers’ earnings and shield them from market volatility. Specifically tailored for oilseed farmers, this scheme offers financial aid based on the sale of their produce.
The primary goal of PDPS is to safeguard farmers from economic hardships that occur when market prices dip below the MSP. With this scheme, farmers do not need to engage in the physical sale of their crops. Instead, the government directly deposits the difference between the MSP and the prevailing market price into their bank accounts, ensuring a transparent and prompt process as soon as they sell their crops.
Farmers can take advantage of this scheme by registering at their local Agricultural Produce Marketing Committee (APMC) Mandi. When they register, they need to provide information about their crops and the area they cultivate. Once registered, farmers can sell their produce at the designated mandi. If the market price falls below the Minimum Support Price (MSP), the government will cover the difference, and the funds will be deposited into the farmers’ bank accounts linked to their Aadhar.