Market Intervention Scheme (MIS) under PM AASHA: Key Changes
Why in the news
The Market Intervention Scheme was reformed and folded into the larger PM AASHA umbrella to protect farmers from price crashes in perishables.
Key facts
- Covers TOP crops: tomatoes, onions and potatoes, plus other perishable horticultural produce.
- Trigger: intervention only when prices drop at least 10% compared with the previous normal year.
- Procurement ceiling raised from 20% to 25% of production.
- DBT option: states can credit farmers the gap between MIP and selling price directly to bank accounts, skipping physical procurement.
- Transport and storage costs, where prices differ between producing and consuming states, are reimbursed by CNA, NAFED and NCCF.
- Example: sanction for moving 1,000 MT of kharif tomato from Madhya Pradesh to Delhi.
- Besides NAFED and NCCF, FPOs, FPCs and state-nominated agencies can handle procurement, storage and transport.
| Feature | New position |
|---|---|
| Price-fall trigger | At least 10% |
| Procurement limit | 25% (earlier 20%) |
| Payment mode | Procurement or DBT of price gap |
| Agencies | NAFED, NCCF, FPOs, FPCs, state agencies |
Significance
- Prevents distress sales of perishables.
- Eases state adoption of MIS.
- Cuts post-harvest losses and improves delivery to consumer markets.
- Supports farmer income when prices are unsustainably low.
Exam angle
- Parent scheme: PM AASHA.
- Agencies: NAFED, NCCF.
- Numbers: 10% fall, 20% to 25% procurement.