Market Intervention Scheme (MIS)

The agriculture ministry has recently revised guidelines for the Market Intervention Scheme (MIS), increasing the crop procurement limit from 20 to 25 %.

• About: Market intervention refers to strategies such as collective action used to address market failures and improve market access for smallholder producers, aiming to enhance their income and food security.

o Market Intervention Scheme (MIS): It is a program that protects farmers from selling their perishable agricultural and horticultural commodities at a loss.

o Implementation: When market prices fall below economic levels or there is a bumper crop. 

• Procurement Agencies: FPOs, FPCs, State-nominated agencies, Central Nodal Agencies to undertake procurement of TOP crops (Tomato, Onion, Potato) under MIS.
• Transportation Cost Reimbursement: Approval given to NCCF for reimbursement of transportation cost of Kharif tomato (up to 1,000 MT) from Madhya Pradesh to Delhi.

• Key Revisions in MIS Guidelines: MIS made a component of PM-AASHA scheme.

o MIS activation condition: Implemented only when market price drops by at least 10% compared to the previous normal year.

o Procurement limit increased: Production coverage limit raised from 20% to 25%.

o Direct Benefit Transfer (DBT) Option: States can pay the difference between Market Intervention Price (MIP) and selling price directly into farmers’ bank accounts instead of physical procurement.

• Storage & Transportation Support: Reimbursement of operational cost for storage and transportation of TOP crops between producing and consuming States by Central Nodal Agencies (NAFED, NCCF, etc.).

o FPOs, FPCs, State-nominated agencies, and other CNAs to also be included in procurement, storage, and transportation arrangements in coordination with implementing States.