The government has revised the guidelines for the Market Intervention Scheme (MIS) to provide better support to farmers facing distress due to price fluctuations. Under the revised scheme, the procurement limit for crops has been increased from 20 percent to 25 percent of total production, offering a broader safety net for farmers growing perishable commodities like tomatoes, onions, and potatoes. This decision aims to ensure that farmers receive fair prices and are not forced to sell their produce at a loss.
MIS, a component of the PM-AASHA scheme, is implemented at the request of State or Union Territory governments when the market price of perishable agricultural and horticultural commodities drops by at least 10 percent compared to the previous normal season. By increasing the procurement coverage limit, the government aims to enhance the scheme’s reach and provide much-needed relief to farmers dealing with market fluctuations.
To make the scheme more flexible and efficient, states now have the option to compensate farmers directly for the difference between the Market Intervention Price (MIP) and the selling price through bank transfers instead of physical procurement. This shift is expected to simplify the process and ensure timely financial assistance for farmers.
In a bid to address regional price disparities, the government has also approved the reimbursement of transportation costs for surplus crops to balance supply and demand across states. Central Nodal Agencies (CNAs) like NAFED and NCCF will bear the operational costs incurred in storing and transporting crops from producing to consuming states. As part of this initiative, NCCF has been approved to reimburse transportation costs for up to 1,000 metric tons of Kharif tomatoes from Madhya Pradesh to Delhi.
Another major development is the expansion of procurement agencies under MIS. In addition to existing nodal agencies like NAFED and NCCF, the government has proposed including Farmer Producer Organizations (FPOs), Farmer Producer Companies (FPCs), and state-nominated agencies to participate in the procurement, storage, and transportation of top crops (tomato, onion, and potato). This move is expected to streamline logistics and ensure efficient price stabilization across different states.
These revisions are aimed at encouraging greater participation from states in the MIS, ultimately benefiting both producers and consumers by ensuring price stability and reducing distress sales.
