The Government of India has revised the guidelines for the Market Intervention Scheme (MIS) to provide better support to farmers dealing with perishable agricultural commodities.
Market Intervention Scheme (MIS)
- The Market Intervention Scheme (MIS) is a component of the PM-AASHA scheme (under revised scheme) and is implemented on the request of State/UT governments.
- It is designed to support farmers who produce perishable commodities like tomato, onion, and potato (TOP crops) that do not have a Minimum Support Price (MSP).
- Nodal Ministry: MIS is implemented by the Ministry of Agriculture and Farmers’ Welfare.
- Funding: The scheme is implemented at the request of a State/UT government which is ready to bear 50% of the loss (25% in case of North-Eastern States), if any, incurred on its implementation.
Revised MIS Guidelines
- Integration with PM-AASHA: The Market Intervention Scheme (MIS) has now been made a component of the PM-AASHA scheme.
- Criteria for Implementation: MIS will now be implemented only when market prices drop by at least 10% compared to the previous normal year.
- Increased Procurement Limit: The procurement/coverage limit for crops under MIS has been increased from 20% to 25% of the total production.
- Option for Direct Benefit Transfer (DBT): States now have the option to pay the difference between the Market Intervention Price (MIP) and the selling price directly into farmers’ bank accounts instead of conducting physical procurement.
- Reimbursement of Storage and Transport Costs: When there is a significant price difference between producing and consuming states, the Central Nodal Agencies (CNA) such as NAFED and NCCF will now reimburse the cost of storage and transportation.
- Approval for Kharif Tomato Transport: The reimbursement of transportation costs for up to 1,000 MT of Kharif tomatoes from Madhya Pradesh to Delhi.
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National Agricultural Cooperative Marketing Federation of India (NAFED)
- The National Agricultural Cooperative Marketing Federation of India (NAFED) is the apex organization of marketing cooperatives for agricultural produce in India.
 It was founded on 2 October 1958 to promote the trade of agricultural produce across the country. - It is registered under the Multi-State Cooperative Societies Act
Functions of NAFED
- Support Farmers: Ensure fair prices for agricultural produce and reduce exploitation by middlemen.
- Promote Cooperatives: Strengthen the cooperative movement in India by supporting agricultural cooperatives.
- Market Access: Provide farmers with access to domestic and international markets for their produce.
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