The Market Intervention Scheme (MIS) is a vital component of the PM-AASHA scheme aimed at supporting farmers in distress. Launched by the Government of India, it provides a safety net for perishable agricultural products, ensuring that farmers receive fair prices. Recent enhancements to the MIS reflect the government’s commitment to boost agricultural sustainability and protect farmers’ livelihoods.
What is the Market Intervention Scheme (MIS)?
The MIS is designed to procure perishable agricultural and horticultural commodities. It is initiated by State or Union Territory governments when market prices drop by at least 10% compared to the previous normal season. This mechanism helps prevent farmers from selling their produce at a loss.
Key Features of the Revised MIS Guidelines
Recent revisions have integrated MIS into the PM-AASHA scheme. The guidelines now stipulate a minimum price reduction of 10% before intervention. The procurement limit for crops has increased from 20% to 25%. This change aims to cover a broader range of farmers and ensure better price stability.
Direct Payment to Farmers
States now have the option to directly deposit the difference between the Market Intervention Price (MIP) and the selling price into farmers’ bank accounts. This method reduces the need for physical procurement and expedites financial support to farmers.
Support for Transportation and Storage
To address price disparities between producing and consuming states, the government has agreed to reimburse operational costs for storage and transportation. Central Nodal Agencies like NAFED and NCCF facilitate this process, ensuring that farmers do not bear the burden of logistics.
Involvement of Farmer Organizations
The revised guidelines propose the inclusion of Farmer Producer Organizations (FPOs) and Farmer Producer Companies (FPCs) in the procurement process. This collaborative approach aims to enhance the efficiency of procurement and logistics, ensuring a smoother operation for farmers.
Recent Approvals and Initiatives
The government has approved reimbursement for the transportation of Kharif tomatoes from Madhya Pradesh to Delhi. This initiative marks the proactive measures taken to support farmers during price fluctuations and ensure market access.
Impact on Farmers and Agriculture
The enhancements to the MIS are expected to have positive impact on the agricultural sector. By ensuring fair prices and reducing distress sales, the scheme aims to improve the financial stability of farmers. This, in turn, contributes to the overall health of the agricultural economy.
Future Prospects
The ongoing revisions and enhancements to the MIS reflect a growing recognition of the challenges faced by farmers. Continued support and adaptation of policies are essential for sustaining agricultural productivity and ensuring food security.
Questions for UPSC:
- Discuss the role of the Market Intervention Scheme in stabilising agricultural prices and supporting farmers.
- Critically examine the effectiveness of direct payment systems in agricultural procurement. How do they compare to traditional methods?
- Explain the significance of involving Farmer Producer Organizations in the procurement process. What benefits does this bring?
- With suitable examples, discuss the impact of price fluctuations on farmers’ livelihoods and agricultural sustainability.
Answer Hints:
1. Discuss the role of the Market Intervention Scheme in stabilising agricultural prices and supporting farmers.
- The MIS provides a safety net for farmers by ensuring a minimum price for their perishable goods.
- It intervenes when market prices drop by at least 10%, preventing distress sales.
- The integration with PM-AASHA enhances the support framework for farmers.
- Increased procurement limits allow for broader coverage of crops and farmers.
- Direct payments to farmers streamline financial support and reduce delays in assistance.
2. Critically examine the effectiveness of direct payment systems in agricultural procurement. How do they compare to traditional methods?
- Direct payment systems expedite financial support, reducing the time farmers wait for compensation.
- They eliminate the need for physical procurement, lowering logistical costs and complexities.
- Farmers receive immediate financial relief, enhancing their cash flow and decision-making.
- However, reliance on banking systems may disadvantage farmers without access to banking facilities.
- Traditional methods may provide more transparency in procurement but can delay payments and add costs.
3. Explain the significance of involving Farmer Producer Organizations in the procurement process. What benefits does this bring?
- Involving FPOs enhances collective bargaining power for farmers, leading to better prices.
- FPOs can streamline procurement and logistics, reducing operational inefficiencies.
- They encourage trust and collaboration among farmers, improving community resilience.
- FPOs can provide valuable market information, helping farmers make informed decisions.
- Inclusion of FPOs supports sustainable agricultural practices through shared resources and knowledge.
4. With suitable examples, discuss the impact of price fluctuations on farmers’ livelihoods and agricultural sustainability.
- Price fluctuations can lead to income instability, forcing farmers to sell at a loss.
- For instance, a sudden drop in onion prices can devastate farmers relying solely on that crop.
- Such volatility discourages investment in sustainable practices, as farmers prioritize immediate survival.
- Long-term price instability can lead to increased debt among farmers, threatening their livelihoods.
- On the other hand, effective interventions like MIS can mitigate these impacts, promoting sustainability.
