Faced with a sharp decline in tomato prices in major producing states like Madhya Pradesh and Maharashtra, the Indian government has activated the transportation component of its Market Intervention Scheme (MIS). This intervention aims to support farmers by facilitating the movement of surplus tomatoes to consuming states where prices are higher.
Market Intervention Scheme Activated
The MIS addresses price differences for TOP crops (tomato, onion, and potato) between producing and consuming states. Under the scheme, the operational costs of storing and transporting these crops from producing states to other markets will be reimbursed to Central Nodal Agencies (CNAs) like the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation of India (NCCF).
Focus on Tomato Farmers
Given the significant drop in tomato prices, Union Agriculture Minister Shri Shivraj Singh Chouhan has approved the implementation of the transportation component of the MIS specifically for tomatoes in Madhya Pradesh, utilizing the NCCF as the implementing agency. The NCCF is currently organizing the logistics to begin transportation operations as quickly as possible.
Support for Farmers
This intervention is intended to provide relief to tomato farmers who are currently facing distress due to the falling prices. By enabling the transportation of surplus tomatoes to markets where demand is higher, the government hopes to stabilize prices and ensure that farmers receive a fair return for their produce. The reimbursement of transportation costs to the CNA makes this intervention financially viable and sustainable.
