Revision of Market Intervention Scheme (MIS) to Support Farmers

The government has revised the Market Intervention Scheme (MIS) to enhance support for farmers by integrating it with PM-AASHA, raising procurement limits, and enabling direct financial transfers to farmers. This update is crucial for UPSC aspirants as it relates to GS Paper 3, focusing on agriculture and economic development. Last Updated: 2025-02-15

Key Facts About Market Intervention Scheme (MIS)

• Integration with PM-AASHA: MIS is now part of PM-AASHA.
• Activation Criteria: MIS activates if market prices drop by 10%.
• Procurement Coverage: Limit raised from 20% to 25% of production.
• Financial Transfers: Price difference can be transferred directly to farmers' accounts.
• Cost Reimbursements: NAFED and NCCF reimburse storage and transport costs for TOP crops.
• Role of FPOs and FPCs: These organizations will manage procurement and transport.
• Support for Perishable Crops: MIS targets fruits, vegetables, and spices.
• Preventing Distress Sales: Aims to reduce losses during price drops.

India's Agricultural Support and Market Stability

The revision of the Market Intervention Scheme is a significant step towards stabilizing agricultural prices and enhancing the efficiency of agricultural marketing in India. This aligns with India's strategic goals of ensuring food security and improving farmer incomes. By integrating with PM-AASHA, the scheme aims to provide a more robust safety net for farmers, especially in the face of market fluctuations. The focus on perishable crops like fruits and vegetables is crucial, as these are often most vulnerable to price volatility.

Related Government Schemes/Policies

• PM-AASHA: Aims to ensure remunerative prices to farmers for their produce.
• NAFED: National Agricultural Cooperative Marketing Federation of India, involved in procurement and distribution.
• NCCF: National Cooperative Consumers' Federation of India, supports in storage and transport.

UPSC Relevance

• GS Paper 3: Agriculture, economic development, and food security.
• Prelims Angle: Questions could focus on the features and objectives of MIS and PM-AASHA.
• Mains Angle: Analytical themes could include agricultural pricing policies and farmer support mechanisms.
• Essay Paper: Topics on agricultural reforms and economic stability.

FAQ Section

• What is the Market Intervention Scheme (MIS)? The MIS is a government initiative to stabilize prices for perishable crops by providing procurement support and financial transfers to farmers.
• Why is the Market Intervention Scheme important? It is crucial for preventing distress sales and ensuring farmers receive fair prices, thus contributing to economic stability in the agricultural sector.
• What are the key features of the revised MIS? Key features include integration with PM-AASHA, increased procurement limits, direct financial transfers, and support for perishable crops.