Market Intervention Scheme

Market Intervention Scheme Latest News

Recently, the Union Agriculture Ministry announced the procurement of 20 lakh metric tonnes (LMT) of potatoes under the Market Intervention Scheme (MIS).

About Market Intervention Scheme

• It is a component of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA).
• It is implemented on the request of the State/UT Government for the procurement of various perishable agricultural commodities such as Tomato, Onion and Potato etc. for which Minimum Support Price (MSP) is not fixed 
• Objective: To intervene in the market to protect the growers of their commodities from making distress sale in the event of a bumper crop during the peak arrival period when the prices tend to fall below economic levels and cost of production.
• Pattern of Assistance: The amount of loss is shared on 50:50 basis between the Central government and the State government (on 75:25 basis in case of North-Eastern States)
• Implementation: By Department of Agriculture and Farmers Welfare 
• MIS will be implemented only when
  • There is a minimum reduction of 10% in the prevailing market price as compared to the previous normal year.
  • The procurement/coverage limit of production quantity of crops is 25 percent.

Source: TH

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