The government revises the guidelines of the Market Intervention Scheme (MIS).

Why in the NEWS?

• Recently, the guidelines of Market Intervention Scheme (MIS) have been amended by the Ministry of Agriculture.

Key Points:

• These amendments are especially beneficial for farmers, as this scheme will help in controlling the price volatility of perishable crops and minimizing their economic losses.
• The fluctuation in the prices of agricultural products across the country, especially with regard to fresh products (such as tomatoes, onions and potatoes), is a matter of discussion at the moment.
• In addition, these steps taken towards increasing the income of farmers and stability of the agriculture sector are being considered important.
• This amendment is expected to improve agricultural policy, better support for farmers and agricultural price stability.

What will you read next in this topic?

1. Increase in Purchase Limit of Crops:
2. Integration with PM-Asha Scheme:
3. Price Reduction Limit:
4. Transport and Storage Assistance:
5. Focus on perishable crops:
6. Expanded Procurement Network:
7. Stability of the agricultural sector:
8. Benefits for agricultural producers:
9. Benefits for consumers:
10. Balance in the market and improvement in the supply chain:

Increase in Purchase Limit of Crops:

• The limit of crops to be purchased under MIS has now been increased from 20% to 25%.
• This means that farmers will now get more coverage and assistance, ensuring a fair price for their produce.
• This amendment is especially beneficial for farmers who were suffering losses due to erratic market prices.

Integration with PM-Asha Scheme:

• The formal integration of the Market Intervention Scheme (MIS) under the Pradhan Mantri Asha (PM-Asha) Scheme marks a significant reform in the agriculture sector. 
• This integration will lead to effective and coordinated implementation of both the schemes, aimed at improving the condition of farmers.

Key Benefits:

• Increased Efficiency: Now by bringing both the schemes under one roof, the government machinery will get an opportunity to work in a more systematic and coordinated manner. 
  • This will not only speed up policy-making but also speed up implementation.
• Smooth Flow of Market Intervention: After integration into the PM-Asha Scheme, the implementation of the Market Intervention Scheme will become simpler and effective. 
  • This will provide better support and protection to farmers in crisis situations, such as bad weather or market volatility.
• Better Support and Monitoring: The integration of both the schemes will ensure that farmers get more holistic support. 
  • It will enable the government to better monitor and intervene in a timely manner, thereby providing maximum benefit to farmers during crop price declines.
• Focus on sensitive commodities: The combination of PM-AASHA and MIS will enable the government to focus more on perishable agricultural commodities such as tomatoes, onions, potatoes, etc. 
  • This will ensure that when the market price of these commodities falls, farmers get a fair price.

Price Reduction Limit:

• MIS will intervene only when there is a reduction of 10% or more in the market price compared to the previous normal season.
• This ensures that intervention will be done only when farmers need assistance the most.
• State governments are now getting the option to pay farmers directly into their bank accounts.
• This has made the payment process easier and faster, so that farmers will receive payments quickly and on time.

Transport and Storage Assistance:

• Farmers will be able to get help in storage and transportation through agencies like NAFED and NCCF.
• The government has decided to reimburse the cost incurred in transporting products from states to consumer states.
• This move will ensure smooth and cheap transportation of agricultural products.

Focus on perishable crops:

• The MIS scheme has a special focus on perishable crops like tomatoes, onions, potatoes, which are more vulnerable to price volatility.
• Due to price fluctuations and losses of these crops, this scheme is necessary to get the right price for these commodities to the farmers.

Expanded Procurement Network:

• FPOs (Farmer Producer Organizations), FPCs (Farmer Producer Companies), and state-nominated agencies are also being included in this procurement network.
• This expansion will further strengthen the procurement and distribution process, which will ensure that farmers get the right price in the market and the products will also reach the consumers.

Stability of the agricultural sector:

• The aim of these amendments to MIS is to bring stability in the agricultural sector. This will increase the income of farmers and ensure price stability for agricultural products.
• In addition, this policy will create a strong mechanism to deal with agricultural crises and protect the agricultural sector from price volatility that occurs every year.

Benefits for agricultural producers:

• Getting a fair price: When there is price instability in the market, farmers may have difficulty selling their produce. 
  • Through MIS, the government intervenes in the market and buys crops from farmers at or above the Minimum Support Price (MSP). 
  • This ensures that farmers get a fair price for their produce.
• Distress protection: When the price of perishable crops such as tomatoes, onions, potatoes falls, the government intervenes to protect farmers from distress sale. 
  • This prevents farmers from selling their produce and they avoid losses.
• Economic security: When crops are unable to be sold in the market, farmers face economic crisis. 
  • Guaranteed purchase under MIS provides economic security to farmers, allowing them to become self-reliant.

Benefits for consumers:

• Price stability: Government intervention under MIS maintains price stability, which directly benefits consumers.
  • When prices are unstable in the market, consumers have to buy products at higher prices. 
  • But when prices are stable, the consumer gets agricultural products at normal and affordable prices.
• Continuity of availability: Government intervention under the MIS scheme keeps the supply of crops running smoothly. 
  • When there is an imbalance in demand and supply in the market, this scheme ensures continuity of supply, making agricultural products easily available to consumers at any time.
• Improvement in quality: When farmers get fair prices and their produce is purchased through the government, they also pay attention to the quality of their crops. 
  • This gives consumers clean and quality products, which are also beneficial for their health.

Balance in the market and improvement in the supply chain:

• Balance of demand and supply: When farmers get fair prices in the market and intervention is done by the government, it maintains a balance between demand and supply. 
  • This balance leads to consumers getting products on time and at low prices, and farmers get stable and high prices for their products.
• Storage and transportation of perishable crops: The government also covers the cost of storage and transportation through central agencies like NAFED and NCCF, which ensures that the supply of agricultural products remains continuous without any interruption. 
  • This ensures that consumers get fresh products, and farmers are able to sell their produce quickly.