The Government of India has implemented the Market Intervention Scheme (MIS) to safeguard the interests of farmers cultivating perishable horticultural crops, including onions. This initiative is designed to stabilize market prices and prevent farmers from incurring losses due to price fluctuations. A press release on this initiative was issued on December 6, 2024.
How the MIS Works:
- The government closely monitors market prices for horticultural crops.
- When prices fall by 10% or more compared to the previous year’s average, the MIS is activated.
- The central and state governments share the cost of procuring surplus produce from farmers.
- By procuring excess produce, the government helps stabilize market prices and prevent them from falling below a certain threshold.
- In some cases, the government may opt to make direct payments to farmers, bypassing the physical procurement process.
Additional Support for Onion Farmers
- Mission for Integrated Development of Horticulture (MIDH): This scheme provides financial assistance for the construction of low-cost onion storage facilities, helping farmers to store their produce and sell it at favorable prices.
- Transportation and Storage Subsidies: The government also provides subsidies for the transportation and storage of onions, ensuring that the produce reaches consumers in a timely and efficient manner.
