Market Intervention Scheme (MIS)
What is it?
- Market Intervention Scheme is a price support mechanism implemented on the request of State Governments for procurement of perishable and horticultural commodities in the event of a fall in market prices.
- The Scheme is implemented when there is at least 10% increase in production or 10% decrease in the ruling rates over the previous normal year.
- It works in a similar fashion to Minimum Support Price based procurement mechanism for food grains, but is an ad hoc mechanism.
- Objective: To intervene in the market to protect the growers of their commodities from making distress sale in the event of a bumper crop during the peak arrival period when the prices tend to fall below economic levels and cost of production.
- Pattern of Assistance: The amount of loss is shared on a 50:50 basis between the Central government and the State government (on a 75:25 basis in case of North-Eastern States).
- Eligibility: State / UT government ready to share the loss on 50:50 basis between the Central government and the State government (75:25 basis in case of North-Eastern States).
Why in News?
- In Jammu and Kashmir, the Market Intervention Scheme was launched last year with an objective to provide optimum prices to the Apple growers.
- The scheme generated awareness among the farming community in Kashmir of their rights and subsequently strengthened them for not getting exploited by the market forces which caused farmers to suffer the losses of the produce.
- In view of the overwhelming response of the Market Intervention Scheme in Kashmir valley, the Jammu and Kashmir government has written to the Centre to extend the benefit of the scheme for this year as well, keeping in view the harvesting season of the apple produce.
Thank you for this archives. Very useful. Thank you OIA