The revised Market Intervention Scheme (MIS) now mandates implementation only when prices drop by 10%. The procurement limit increases from 20% to 25%. Farmers can receive direct payments via bank transfer instead of physical procurement. MIS is part of PM-AASHA, which provides price support, deficiency payments, and private procurement options to empower farmers.
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The Union government has revised the Market Intervention Scheme (MIS) guidelines.
It is a state-sponsored scheme that is implemented at the request of a state or union territory (UT) government to protect farmers from distress sales by procuring perishable agricultural and horticultural commodities like tomatoes, onions, and potatoes, for which Minimum Support Price (MSP) is not applicable.
Both central and state governments share the losses incurred under MIS. The central government bears 50% of the losses, while states bear the remaining 50%. For North-Eastern states, the central government shares 75% of the losses.
State governments request the implementation of MIS when prices fall significantly. Designated agencies like NAFED, Farmer Producer Organizations (FPOs), Farmer Producer Companies (FPCs), and state-nominated agencies undertake procurement, storage, and transportation of crops under the scheme.
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How it works ● The state or UT government requests the MIS for perishable agricultural or horticultural commodities. ● The state procures the commodities at a fixed Market Intervention Price (MIPS). ● The state procuring agency submits the details of accounts to the central government for repayment. ● The central government reimburses the central share of loss to the state procuring agency. |
It ensures that farmers receive a fair price for their produce even during market price crashes. It prevents distress sales, stabilizes income, and supports farmers during periods of overproduction or price volatility.
Recent guidelines
Made MIS a component of the integrated scheme of PM-AASHA.
MIS will be implemented only when there is a minimum reduction of 10% in the prevailing market price as compared to the previous normal year.
The procurement/coverage limit of production quantity of crops has been increased from the existing 20% to 25%.
The State has also been given the option to pay the difference between the Market Intervention Price (MIP) and the selling price directly into the bank account of the farmers in place of physical procurement.
It is a Central Sector Scheme announced in 2018, under the Ministry of Agriculture & Farmers Welfare to support farmers and improve their income.
How does PM-AASHA help farmers?
How does PM-AASHA benefit the economy?
Components of PM-AASHA
PM-AASHA includes the Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS), and Private Procurement & Stockist Scheme (PPSS).
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PRACTICE QUESTION Q. Consider the following statements about the Market Intervention Scheme (MIS): 1. It is activated only when market prices fall by at least 25% compared to the previous normal season. 2. It is implemented only for perishable horticultural commodities. 2. The Union government bears 75% of the losses for North-Eastern states. 4. It is a component of the PM-AASHA scheme. How many of the above statements are correct? A) Only one B) Only two C) Only three D) All four Answer: C Explanation: Statement 1 is incorrect: MIS is activated when market prices fall by at least 10% (not 25%) compared to the previous normal season. Statement 2 is correct: MIS is implemented specifically for perishable horticultural commodities like tomatoes, onions, and potatoes, which are not covered under the Minimum Support Price (MSP) system. Statement 3 is correct: For North-Eastern states, the Union government bears 75% of the losses, while the state government bears the remaining 25%. For other states, the loss-sharing ratio is 50:50. Statement 4 is correct: MIS is a component of the PM-AASHA scheme, which aims to support farmers and ensure fair prices for their produce. |
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