The government has revamped the Market Intervention Scheme (MIS), a component of the PM-AASHA scheme, to provide stronger support to farmers facing price volatility for perishable agricultural and horticultural commodities. The MIS is designed to prevent distress sales by farmers when market prices fall significantly.
Key Revisions to MIS Guidelines
To encourage greater state participation and make the scheme more effective, the government has implemented several key changes:
Integration with PM-AASHA: The MIS is now formally integrated as a component of the PM-AASHA scheme, streamlining its implementation.
Price Reduction Threshold: The trigger for MIS intervention is a minimum 10% reduction in the prevailing market price compared to the previous normal year. This ensures intervention is targeted when needed most.
Increased Procurement Limit: The maximum quantity of crops that can be procured under the MIS has been increased from 20% to 25% of the total production, offering greater coverage and support to farmers.
Direct Payment to Farmers: States now have the option to directly transfer the difference between the Market Intervention Price (MIP) and the selling price into the farmers’ bank accounts, rather than relying solely on physical procurement. This offers a more flexible and efficient mechanism for price support.
Transportation and Storage Support: Recognizing the importance of market access, the government will reimburse Central Nodal Agencies (CNAs) like NAFED and NCCF for operational costs incurred in storing and transporting TOP crops (tomato, onion, and potato) from producing states to consuming states when price differences exist. For example, approval has been granted to NCCF for reimbursement of costs to transport up to 1,000 MT of Kharif tomato from Madhya Pradesh to Delhi.
Expanded Procurement Network: The government plans to expand the network of agencies involved in TOP crop procurement under MIS. In addition to NAFED and NCCF, this will potentially include Farmer Producer Organizations (FPOs), Farmer Producer Companies (FPCs), state-nominated agencies, and other central nodal agencies. These agencies will also be involved in storage and transportation arrangements, coordinated with the implementing state.
Focus on TOP Crops and Perishables
The MIS is particularly focused on perishable commodities like tomatoes, onions, and potatoes, which are susceptible to price fluctuations. These revisions aim to provide a more robust and responsive mechanism to protect farmers from distress sales and ensure better price realization for their produce. The inclusion of FPOs and FPCs is expected to further strengthen the procurement and distribution network, benefiting both farmers and consumers.
