The Market Intervention Scheme (MIS) for agricultural commodities’ primary goal is to support farmers by stabilizing perishable agricultural commodities’ prices during periods of market glut and ensuring that their produce will fetch fair market value. The Ministry of Agriculture and Farmers Welfare, Government of India, is responsible for implementing the MIS.
The Market Intervention Scheme’s primary goals and duties typically consist of:
Price Stabilization: When there is an oversupply on the market, the MIS seeks to stabilize the prices of agricultural commodities, especially perishable crops. In order to intervene, it buys the produce directly from the farmers at a predetermined minimum support price (MSP) or pre-announced price, creating a guaranteed market and avoiding distress sales.
Market Support: During periods of market oversupply or abrupt price drops, the program offers market support to farmers. By providing a procurement process that guarantees farmers a fair price and lessens their exposure to market swings and abuse, it fosters a favorable market environment.
Creation of Buffer stockpiles: The Intervention Scheme supports the development of agricultural commodity buffer stockpiles. These buffer inventories serve as a reserve to control market turbulence and keep prices stable. When there is a shortage or prices rise above a particular point, the purchased goods are kept in storage before being reintroduced into the market.
Farmer Income Support: The MIS makes sure that farmers obtain fair prices for their goods by acquiring commodities at MSP or previously published prices.
