MARKET INTERVENTION SCHEME (MIS)

GS3 ECONOMICS: 

The Market Intervention Scheme (MIS) is part of the PM-AASHA initiative, designed to support farmers by stabilizing prices for perishable agricultural commodities during price fluctuations.

Key Features

• Protects farmers from distress sales, especially during bumper crop seasons.
• Focuses on perishable commodities like tomatoes, onions, and potatoes.
• Activated when market prices fall by at least 10% from the previous year.
• Revised guidelines increase procurement limits and offer flexible payment methods.

Conditions for Implementation

• Scheme activated when prices fall by 10% or more.
• Procurement limit increased from 20% to 25% of production.
• States can buy crops or transfer the price difference to farmers’ accounts.

Support for Price Differences Between States

• Transport and storage costs reimbursed if there’s a price difference between producing and consuming states.
• Example: NCCF approved transportation of 1,000 MT of Kharif tomatoes from Madhya Pradesh to Delhi.

Implementation Process

• Managed by the Department of Agriculture and Cooperation.
• NAFED acts as the central procurement agency, with state-run agencies participating.
• Procurement continues until prices stabilize above the Market Intervention Price (MIP).

Financial Aspects

• Central and state governments share the financial burden equally.
• For North-Eastern states, the central government covers 75% of the losses.
• No grants are offered; losses are reimbursed to states.

Commodities Covered

• Covers a range of perishable commodities, such as apples, garlic, oranges, grapes, and spices.

Role of State Governments

• Responsible for requesting the scheme’s activation and managing local procurement efforts.
• Activated when genuine market distress is identified.

Benefits to Farmers

• Guarantees minimum prices, preventing distress sales.
• Stabilizes farmer incomes and promotes sustainable agriculture by ensuring fair compensation for produce.