In response to the declining tomato prices in Madhya Pradesh, Maharashtra, and other major production states, the government has approved the implementation of the transportation component of the Market Intervention Scheme (MIS) through the National Cooperative Consumers' Federation of India (NCCF). This initiative aims to stabilize market prices and protect farmers from distress sales.
Under the MIS, when there is a significant price gap in tomato, onion, and potato (TOP) crops between producing and consuming states, the operational expenses for storage and transportation are reimbursed to Central Nodal Agencies (CNAs) such as NAFED and NCCF. This move is expected to benefit farmers in surplus-producing states by ensuring their produce reaches markets where demand is higher.
Union Agriculture Minister Shivraj Singh Chouhan has given the green light for this transportation component specifically for tomatoes in Madhya Pradesh, a state witnessing a steep decline in prices. The NCCF is preparing to begin transportation operations as soon as possible to ensure a smooth supply chain to prevent wastage and financial losses for growers.
The Market Intervention Scheme aims to support perishable horticultural and agricultural commodities that are not covered by the Minimum Support Price (MSP) framework.
This scheme is activated at the request of state governments, especially during periods of bumper harvests when prices drop due to excess production. The financial losses incurred under the scheme are shared equally between the Central and State Governments.
Over the years, the MIS has been instrumental in stabilizing markets for various perishable commodities, including apples, garlic, oranges, pineapples, onions, and potatoes across multiple states.
