**Executive Summary**
This document addresses the calculation of losses under the Market Intervention Scheme (MIS) in India. The MIS aims to provide remunerative prices to farmers for perishable agricultural and horticultural commodities not covered under the Minimum Support Price regime. The scheme is implemented at the request of State/UT governments and includes measures to protect farmers from distress sales. The question was scheduled to be answered on December 2nd, 2025.
**Key Points / Main Content**
* **Market Intervention Scheme (MIS) Overview:**
* The MIS is a component under PM-AASHA.
* It targets perishable agricultural and horticultural commodities.
* It does *not* cover commodities under the Minimum Support Price regime.
* The goal is to prevent distress sales during bumper crops when prices fall.
* A 10% decrease in ruling market prices compared to the previous year is required for implementation.
* The scheme is implemented upon request by State/UT governments.
* **Loss Sharing and Procurement Limits:**
* States/UTs bear 50% of the loss, with North-Eastern States bearing 25%.
* Procurement is limited to 25% of the estimated state production for the particular crop and season.
* Loss sharing is 50:50 between the Central Government and State Governments (75:25 for North East States).
* Loss sharing is restricted up to 25% of the total procurement value, including commodity cost and overhead expenses.
* **Scheme Amendments:**
* The government has amended the scheme twice.
* New components of Price Differential Payment (PDP) have been added, allowing direct payment of the price difference between the Market Intervention Price (MIP) and the selling price to farmers for crops traded in the APMC mandis.
* Reimbursement is allowed for transportation and storage costs of TOP crops (Tomato, Onion, and Potato) to central nodal and state-designated agencies for storing and transporting from producing to consuming states.
**Impact Analysis**
**Stakeholders**
* **Farmers**
* **Impact:** Receive remunerative prices for perishable commodities, especially during bumper crop seasons, protecting them from distress sales. They are now also eligible for direct payment of the price difference between MIP and selling price.
* **Action Required:** Engage with the MIS scheme and the APMC mandis to be able to sell products there.
* **State/UT Governments**
* **Impact:** Responsible for requesting the implementation of the scheme and bearing a portion of the losses (50% or 25% for North-Eastern states).
* **Action Required:** Monitor market prices and request the implementation of the scheme when prices fall below economic levels. Additionally, State designated agencies need to be arranged for storing and transporting from producing to consuming states.
* **Central Government**
* **Impact:** Shares losses with State Governments and responsible for overall scheme management and amendments.
* **Action Required:** Continue monitoring and evaluating the scheme to ensure its effectiveness and efficiency.
* **APMC Mandis**
* **Impact:** Serve as trading places where farmers sell products
* **Action Required:** None mentioned in the document.
* **Central Nodal Agencies and State Designated Agencies**
* **Impact:** They can be reimbursed for transportation and storage cost of TOP crops.
* **Action Required:** Store and transport TOP crops (Tomato, Onion, and Potato) from producing state to consuming state.
Key Entities Referenced
Market Intervention Scheme (MIS): A scheme implemented by the government to provide remunerative prices to farmers for agricultural and horticultural commodities not covered under the Minimum Support Price regime.
PM-AASHA: An umbrella scheme under which the Market Intervention Scheme (MIS) is a component, focused on procurement of agricultural and horticultural commodities.
Ministry of Agriculture and Farmers Welfare: The primary ministry responsible for implementing the Market Intervention Scheme (MIS).
O.I.H
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 370
TO BE ANSWERED ON THE 2ND DECEMBER, 2025
LOSSES UNDER MARKET INTERVENTION SCHEME
370. SMT. SANJNA JATAV:
MRS. RUCHI VIRA:
Will the Minister of AGRICULTURE AND FARMERS WELFARE be pleased to state:
(a) whether the calculation of losses under the present Market Intervention Scheme
(MIS) is limited to only 25 per cent of the purchase cost and not based on the actual net
loss incurred on the purchase and sale of commodities, thereby adversely affecting the
basic objective of protecting farmers during market fluctuations;
(b) if so, whether the Government propose to amend the scheme so that the
damages are calculated on the basis of actual net loss and not merely on the purchase
cost and distressed farmers receive actual relief and are not forced to sell their produce at
distressed prices; and
(c) if not, the reasons therefor?
ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ(cid:874)ष एव ं (cid:873)कसान क(cid:227)याण रा(cid:207)य म(cid:287)ं ी (SHRI RAMNATH THAKUR)
(a) to (c): To provide remunerative price to the farmers, Governments implements Market
Intervention Scheme (MIS), a component under PM-AASHA, for procurement of agricultural
and horticultural commodities, which are perishable in nature and are not covered under
the Minimum Support Price regime. The objective is to protect the farmers from distress
sale in the event of a bumper crop during the peak arrival, when the prices tend to fall below
economic levels and the cost of production. There should be at least a 10% decrease in the
ruling market prices over the previous normal year. 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. The maximum quantity of
procurement is allowed upto 25% of estimated production of the state for particular crop
and for particular season. Total amount of loss is shared on a 50:50 basis between the
Central Government and the State Government (75:25 for North East States) restricted upto
25 % of the total procurement value, including cost of the commodity procured and
permitted overhead expenses.
Government has amended the scheme twice. New components of Price Differential
Payment (PDP) with an option to make direct payment of the price difference between the
Market Intervention Price (MIP) and the selling price to the farmers for the crops traded in
the APMC mandis has been added. Additionally, reimbursement for transportation and
storage cost of TOP crops (Tomato, Onion and Potato) to central nodal agencies & State
designated agencies for storing and transporting them from producing state to consuming
state are allowed.
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