Ministry of Agriculture & Farmers Welfare has notified revised guidelines Market Intervention Scheme (MIS) to encourage more States to adopt the scheme.
Background
MIS is a crucial component of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA), aimed at stabilizing prices of perishable agricultural and horticultural commodities. It provides relief to farmers when the Minimum Support Price (MSP) is not applicable, ensuring they do not have to sell their produce at distress prices due to market fluctuations.
Implementation of Market Intervention Scheme (MIS)
MIS is implemented based on the request of State/UT governments for procurement of perishable commodities like tomato, onion, and potato (TOP crops) when:
- The market price falls by at least 10% compared to the normal season.
- There is no MSP applicable for the commodity.
This intervention ensures price stabilization and prevents losses to farmers in distress situations.
Key Revisions in MIS Guidelines
Government has revised the MIS Guidelines with the following provisions:
- Integration with PM-AASHA: MIS is now a component of the integrated scheme of PM-AASHA to provide better price support to farmers.
- Price Reduction Criteria: The scheme will only be implemented when the market price drops by at least 10% compared to the previous normal year.
- Increased Procurement Limit: The procurement limit for covered crops has been raised from 20% to 25% of the total production quantity.
- Direct Payment Option to Farmers: Instead of physical procurement, States now have the option to directly transfer the price difference between the Market Intervention Price (MIP) and selling price into farmers’ bank accounts.
Support for TOP Crops (Tomato, Onion, Potato) and Price Stabilization Measures
To address price differences between producing and consuming States, the Central Government has introduced additional measures:
Storage and Transportation Cost Reimbursement:
- Central Nodal Agencies (CNA) such as NAFED and NCCF will reimburse operational costs incurred for storing and transporting produce from surplus to deficit regions.
- Example: Approval for 1,000 MT of Kharif tomato transportation from Madhya Pradesh to Delhi under NCCF.
Expanded Role of Institutions: In addition to NAFED and NCCF, the scheme will now include:
- Farmer Producer Organizations (FPOs)
- Farmer Producer Companies (FPCs)
- State-nominated agencies
- Other Central Nodal Agencies
These entities will procure, store, and transport crops from producing states to consuming states in coordination with the implementing State governments.
Key Benefits of MIS
- Price Stability: Farmers receive price support when market prices drop significantly.
- Enhanced Farmer Income: Direct payment or procurement prevents distress selling.
- Better Coverage: The increased procurement limit (25%) ensures greater support to farmers.
- Supply Chain Efficiency: Storage and transportation assistance ensures that perishable crops reach markets efficiently.
- Institutional Strengthening: The inclusion of FPOs, FPCs, and State agencies enhances the effectiveness of MIS.