Market Intervention Scheme (MIS)

The Market Intervention Scheme (MIS) is a key component of the PM-AASHA scheme, aimed at stabilizing market prices for perishable agricultural and horticultural commodities like tomatoes, onions, and potatoes, which are not covered under the Minimum Support Price (MSP).

• MIS is implemented upon request from a State/Union Territory (UT) government if there is a minimum 10% reduction in market prices compared to the previous normal season. This prevents distress selling by farmers.

Revised Guidelines for MIS

To encourage broader implementation of the scheme, the government has introduced key revisions in the MIS guidelines:

• MIS is now a component of the integrated PM-AASHA scheme.
• Implementation Criteria: MIS will be activated only if market prices drop by at least 10% compared to the previous normal year.
• Expanded Procurement Coverage: The procurement limit for crops has been increased from 20% to 25% of total production.
• Direct Farmer Compensation: States now have the option to directly transfer the difference between the Market Intervention Price (MIP) and the selling price into farmers’ bank accounts, instead of opting for physical procurement.

Significance of the Reforms

• Strengthens agricultural price support mechanisms, complementing MSP-based interventions.
• Protects farmers from market volatility, ensuring fair prices.
• Encourages wider adoption of MIS by States/UTs.
• Improves efficiency by offering direct financial compensation, reducing logistical burdens.