Revised MIS Guidelines Enhance Support for Farmers’ Stability

Why in News?

The central government has revised the Market Intervention Scheme (MIS) to better protect farmers from price crashes in perishable crops. Key updates include direct benefit transfers, expanded procurement coverage, and support for storage and transportation costs.

Revised MIS Guidelines Enhance Support for Farmers' Stability

Key Changes in MIS:

  • The central government has revised the Market Intervention Scheme (MIS) to support farmers facing price crashes in perishable crops like tomatoes, onions, and potatoes, which are not covered under Minimum Support Price (MSP).
  • The scheme is activated when market prices drop by 10% or more compared to the previous normal year.
  • MIS is now integrated into PM-AASHA, expanding procurement coverage from 20% to 25% of production, ensuring better price stability.

Direct Benefit Transfer (DBT) for Farmers:

  • A major reform enables states to compensate farmers directly by transferring the difference between Market Intervention Price (MIP) and the selling price into their bank accounts.
  • This move reduces logistical challenges and ensures faster financial relief to farmers without the need for physical procurement.

Supply Chain & Operational Cost Support

  • Storage and transportation costs from production hubs to consumer markets will be reimbursed by Central Nodal Agencies (CNA) like NAFED and NCCF.
  • The revised scheme makes MIS more transparent, efficient, and beneficial, shielding farmers from market volatility and ensuring a stable income.

What is Market Intervention Scheme (MIS)?

  • A price support scheme under the Department of Agriculture & Farmers’ Welfare.
  • Part of PM-AASHA, ensuring remunerative prices for farmers.
  • Covers perishable crops (horticultural & agricultural commodities) not under MSP.
  • Implemented at the request of State/UT Governments when market prices drop by 10% compared to the previous season.

Key Features of MIS:

  • Ad-hoc Scheme: Activated during market price crashes.
  • State-Central Cost Sharing: 50:50 (North-Eastern States: 75:25).
  • Operational by: NAFED, NCCF & State Agencies.