The Market Intervention Scheme (MIS) is one of the flagship components of the PM AASHA scheme. It would assist farmers in the stabilization of market prices of perishable agricultural and horticultural produce such as tomatoes, onions, and potatoes (TOP crops) when the market prices fall by at least 10% from the normal season preceding it.
- Integration with PM AASHA
- MIS has now become part of the larger PM AASHA scheme, therefore intensifying its reach and impact.
- Price Reduction Threshold
- The schemes would be implemented only when market prices reduce by at least 10% from the earlier normal year.
- High Procurement Threshold
- The procurement/coverage limit has increased from 20% to 25% of the total production quantity.
- Option for Direct Benefit Transfer (DBT)
- In the new format, states now have the liberty to pay to farmers the MIP minus selling price directly to their bank account rather than going in for procurement of the product.
- Reimbursement of Transportation and Storage Expenses
- In case of differential price between producing and consuming states, the CNA, NAFED and NCCF will pay for the operational costs of transportation and storage.
- Example: Sanction for 1,000 MT of Kharif tomato transportation from Madhya Pradesh to Delhi under this scheme.
- Enhanced Participation of Procurement Agencies
- In addition to NAFED and NCCF, other agencies such as Farmer Producer Organizations (FPOs), Farmer Producer Companies (FPCs), and State nominated agencies will participate in procurement, storage, and transportation of TOP crops.
Importance & Effect
- Averts Distress Sales
- Prevents farmers from selling their perishable produce at distress prices.
- State Incentives
- New policies facilitate states in adopting and implementing MIS.
- Supply Chain Efficiency
- Helps reduce post harvest losses and ensure efficient delivery of produce to consumer markets.
- Farmer Income
- Helps the farmer during low market prices when they cannot be sold at a sustainable level.
The Market Intervention Scheme has been reformed for strengthening mechanisms to protect farmers through price stability, proper procurement policies, and financial support; this will strengthen government intervention in times of crisis, ensuring there is no distress sale and effective compensation for the farmers concerned.
