Market Intervention Scheme

Market Intervention Scheme Latest News

Recently, the central government has revised the Market Intervention Scheme (MIS) guidelines.

About Market Intervention Scheme

• It is implemented on the request of State/UT Government for procurement of various perishable agricultural/horticultural commodities such as tomato, onion and potato etc. for which Minimum Support Price (MSP) is not applicable.
• It will be implemented only when there is a minimum reduction of 10% in the prevailing market price as compared to the previous normal year.
• Revised Market Intervention Scheme Guidelines
  • It made MIS a component of the integrated scheme of PM-AASHA.
  • The procurement/coverage limit of production quantity of crops has been increased from the existing 20 percent to 25 percent.
  • The State has also been given the option to pay the difference between the Market Intervention Price (MIP) and the selling price directly into the bank account of the farmers in place of physical procurement.
  • Reimbursement: The operational cost incurred in storage and transportation of crops from the producing State to other consuming States will be reimbursed by Central Nodal Agencies (CNA) like NAFED and NCCF, in the interest of farmers. 

Market Intervention Scheme FAQs

Q1: What do you mean by market intervention?

Ans: 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.

Q2: What is NAFED and its role?

Ans: National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) is an apex organization of agricultural produce marketing cooperatives. It is registered under the Cooperative Societies Act and is one of the largest procurers as well as marketing agency of agricultural products in India.

Source: BS