Market Intervention Scheme
Why in News?
On April 18, 2026, the Ministry of Agriculture approved a massive proposal from Uttar Pradesh to procure 20 lakh metric tonnes (LMT) of potatoes for the 2025–26 agricultural year.
Objective
- Distress Sale Prevention: To protect growers of horticultural and agricultural commodities from having to sell their produce at a loss during bumper harvests or market crashes.
- Price Support: Provides an alternative market when prices drop below the cost of production.
Eligibility & Scope
- Non-MSP Crops: Covers perishable items like Tomato, Onion, Potato (TOP crops), apples, garlic, oranges, grapes, and spices.
- Specific Triggers: The scheme is activated only when there is a at least a 10% increase in production or a 10% fall in market prices compared to a "normal" year.
- Ad-hoc Nature: Unlike MSP, which is pre-announced, MIS is implemented for a limited duration and in specific markets based on a State Government's request.
Funding & Loss Sharing
- General States: Losses are shared 50:50 between the Centre and the State.
- North-Eastern States: The sharing ratio is 75:25 (Centre: State).
- Loss Cap: The total loss shared is limited to 25% of the total procurement value, covering the cost of commodities plus allowed overheads.
Key Features of Revised Guidelines
The 2025–26 reforms have introduced several farmer-centric changes:
- Increased Procurement Limit: The coverage limit for the quantity of crops procured has been raised from 20% to 25% of total production.
- Direct Benefit Transfer (DBT): States now have the option to pay the price difference (MIP minus market selling price) directly into farmers' bank accounts instead of doing physical procurement.
- Logistics Support: For TOP crops, Central Nodal Agencies like NAFED and NCCF are now reimbursed for storage and transport costs when moving produce from surplus states to high-demand consuming states.
- Agency Expansion: In addition to NAFED, entities like Farmer Producer Organisations (FPOs) and State-nominated agencies can now undertake procurement.
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