CURRENT AFFAIRS
CURRENT AFFAIRS
Description
The Market Intervention Scheme (MIS) is a crucial component of the PM-AASHA initiative, designed to assist farmers during price fluctuations of perishable agricultural commodities. The scheme is activated upon a request from State or Union Territory (UT) governments when market prices fall. Its primary goal is to prevent farmers from having to sell their produce at extremely low prices.
Key Features Of MIS
MIS is specifically targeted at perishable items like tomatoes, onions, and potatoes, providing price protection during surplus crop seasons. It is activated when market prices experience a significant drop, ensuring farmers don't face distress sales. Recent changes have made the scheme more effective, including higher procurement limits and more flexible payment options.
Conditions For Implementation
The scheme is triggered when market prices fall by at least 10% compared to the previous year. The procurement limit has been increased from 20% to 25% of total production. Instead of purchasing crops directly, states can also choose to transfer the price difference to farmers’ bank accounts.
Support For Price Differences Across States
If price disparities occur between producing and consuming states, the government reimburses the cost of transportation and storage through agencies like NAFED and NCCF. An example includes the approval for NCCF to transport 1,000 MT of Kharif tomatoes from Madhya Pradesh to Delhi.
Implementation Process
The Department of Agriculture and Cooperation manages the scheme, with NAFED acting as the central procurement agency. State-run agencies participate in the procurement process, which continues until the market prices stabilize above the Market Intervention Price (MIP).
Financial Aspects
The financial costs of the scheme are shared equally by the central and state governments. In North-Eastern states, the central government covers 75% of the expenses. Instead of providing grants, the scheme reimburses states for losses incurred during implementation.
Commodities Covered
The MIS supports a wide array of perishable commodities, including apples, garlic, oranges, grapes, and various spices. It is particularly beneficial during periods of surplus production when prices fall below sustainable levels.
Role Of State Governments
State governments must formally request the activation of MIS and manage the local procurement efforts. The scheme is only triggered when there is a genuine price reduction, ensuring it is applied when the market is in distress.
Benefits To Farmers
The MIS provides a safety net for farmers by guaranteeing minimum prices for their produce, helping to prevent distress sales. The initiative supports income stability for farmers, promoting more sustainable agricultural practices by ensuring they receive fair compensation for their crops.
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