The central government has made a significant change to the Market Intervention Scheme (MIS) to provide relief to farmers. This scheme, which is part of the Prime Minister’s Agricultural Income Protection Campaign (PM-AASHA), applies to agricultural products like tomatoes, onions, and potatoes (known as TOP crops) that do not have a Minimum Support Price (MSP). The government will now bear the cost of transporting and storing these crops from producing states to consuming states, preventing farmers from being forced to sell their produce at low prices.
According to the revised guidelines, the scheme will only be implemented if the price of any agricultural produce falls by more than 10% compared to the previous normal season. The purchase limit has been increased from 20% to 25%. States will also have the option to transfer the difference between the Market Intervention Price (MIP) and the sale price directly to farmers' bank accounts.
Cases where there is a price difference between producing and consuming states, central nodal agencies such as NAFED and NCCF will reimburse the transportation and storage costs. This will ensure that farmers receive fair prices for their produce, and consumers benefit from stable prices.
Improvements in PM-AASHA: The government has integrated the Price Support Scheme (PSS), Price Stabilization Fund (PSF), Price Deficit Payment Scheme (PDPS), and Market Intervention Scheme (MIS) under the PM-AASHA framework. The new rules allow for the purchase of up to 25% of national production, which will increase government purchases of pulses, oilseeds, and coconut. A ₹45,000 crore fund has been allocated, which will be used when market prices fall below MSP. This change will ensure that farmers receive a fair price for their produce, and consumers will continue to have access to food items at stable prices.
