**Executive Summary**
This document provides answers to unstarred questions raised in the Lok Sabha regarding the protection of farmers from price fluctuations, specifically in Maharashtra, and is to be answered on December 16, 2025. The report details the implementation of the Market Intervention Scheme (MIS) under PM-AASHA, provides data on past MIS interventions, describes the Agriculture Infrastructure Fund (AIF), and discusses the promotion of direct market linkages for farmers. The response does not provide explicit action items for stakeholders but outlines existing and ongoing government initiatives.
**Key Points / Main Content**
* **Market Intervention Scheme (MIS) under PM-AASHA:**
* Aims to provide remunerative prices to farmers for perishable agricultural and horticultural commodities not covered under MSP.
* Objective is to protect farmers from distress sales during peak arrival times when prices fall below economic levels.
* Requires at least a 10% decrease in market prices compared to the previous year.
* Implemented at the request of State/UT governments, who bear 50% of the loss (25% for North-Eastern states).
* Procurement is limited to 25% of estimated state production for a specific crop and season.
* Losses are shared 50:50 between the Central and State Governments (75:25 for North East States), up to 25% of the total procurement value.
* Includes new components like Price Differential Payment (PDP) and reimbursement for transportation/storage of TOP crops (Tomato, Onion, Potato).
* **MIS Implementation Data (2022-2026):**
* 1,00,126 MT of C-grade apple, grapes, and ginger procured.
* Transportation of Tomatoes implemented in Madhya Pradesh, Chhattisgarh, and Odisha during 2024-25.
* Price deficiency payment for 2,50,000 MT of Mango in Karnataka during 2025-26.
* **Agriculture Infrastructure Fund (AIF):**
* Launched in 2020-21 to address post-harvest management gaps and strengthen agricultural infrastructure.
* Banks extend loans worth ₹ 1 lakh crore with a 3% per annum interest subvention.
* As of November 25, 2025, 338 projects in the Pune (including Shirur) district have been sanctioned, totaling ₹ 233 crore.
* **Promotion of Direct Market Linkages:**
* Agriculture marketing is a state subject.
* Government is promoting digital platforms like e-NAM for wholesale trade.
* Government is promoting Farmers Producer Organizations (FPO) to sell directly to retail consumers via e-commerce like Open Network for Digital Commerce (ONDC), GeM, etc.
**Impact Analysis**
**Farmers in Maharashtra, particularly those in Floriculture and Vegetable Cultivation**
* **Impact:** MIS aims to provide them with fair prices and protect them from distress sales. AIF is intended to improve the facilities around post-harvest and storage. Digital platforms help sell directly to consumers.
* **Action Required:** No action is explicitly mentioned in the document, but the farmers should be aware of MIS and the process to request it for their state, as well as the opportunities from the AIF scheme and how to participate in e-NAM and FPO programmes.
**State/UT Governments**
* **Impact:** Required to request the implementation of MIS and bear a percentage of any losses incurred.
* **Action Required:** State governments need to formally request the implementation of MIS and be prepared to contribute their share of potential losses (50% or 25% for North-Eastern states).
**Central Government**
* **Impact:** Bears the remaining percentage of losses incurred under MIS and responsible for the implementation and funding of AIF.
* **Action Required:** Continue implementing and funding MIS and AIF as per the outlined schemes.
Key Entities Referenced
Minimum Support Price (MSP): A price intervention mechanism to ensure farmers receive a minimum price for their produce, particularly for crops not covered under the Market Intervention Scheme.
Market Intervention Scheme (MIS): A scheme to procure agricultural and horticultural commodities when prices fall below economic levels, especially during bumper crops.
PM-AASHA: The overarching scheme under which the Market Intervention Scheme (MIS) operates, aimed at ensuring remunerative prices for farmers.
Agriculture Infrastructure Fund (AIF): A fund launched in 2020-21 to address gaps in post-harvest management and strengthen agricultural infrastructure.
e-NAM: A digital platform for wholesale trade designed to promote direct market linkages between farmers and consumers.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 2694
TO BE ANSWERED ON THE 16TH DECEMBER, 2025
PROTECTION OF FARMERS FROM PRICE FLUCTUATIONS
2694. DR. AMOL RAMSING KOHLE:
SMT. SUPRIYA SULE:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ(cid:874)ष एव ं (cid:873)कसान
क(cid:227)याण म(cid:287)ं ी be pleased to state:
(a) the specific measures being taken by the Government to ensure that farmers
in Maharashtra, particularly those engaged in floriculture and vegetable cultivation,
receive a fair Minimum Support Price (MSP) for their produce;
(b) the details of the market intervention schemes implemented in the last three
years to protect farmers from price fluctuations and post-harvest losses;
(c) the financial assistance and subsidies provided to farmers for the establishment
of cold storage facilities, pack houses, and agri-processing units in the Shirur, Pune
Parliamentary constituencies; and
(d) whether the Government is considering a new policy framework to promote
direct market linkages between farmers and consumers and to reduce the role of
intermediaries?
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 provide remunerative price to the farmers, Government implements Market
Intervention Scheme (MIS), a component under PM-AASHA, across the country 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.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.
(b): During the years 2022-23, 2023-24, 2024-25 and 2025-26, 1,00,126 MT of C
grade apple, grapes and ginger has been procured and implemented under MIS.
During 2024-25, transportation of Tomatoes under MIS has been implemented in
Madhya Pradesh,Chhatisgarh and Odisha. During 2025-26 , MIS for price deficiency
payment has been implemented for 2,50,000 MT of Mango in Karnataka.
(c): The Agriculture Infrastructure Fund (AIF) was launched in 2020-21 to address
gaps in post-harvest management and strengthen agricultural infrastructure. Banks
and financial institutions extend loans worth ₹ 1 lakh crore, with 3% per annum interest
subvention from AIF. Under AIF as on 25th November, 2025, 338 no. of projects have
been sanctioned to farmers with the sanctioned amount of ₹ 233 crore in
Pune(including Shirur) district.
(d): Agriculture marketing is a state subject. To promote direct market linkages
between farmers and consumers, Government is implementing digital platform like e-
NAM for wholesale trade and promoting Farmers Producer Organization (FPO) to sell
directly to retail consumer via e commerce like Open Network for Digital Commerce
(ONDC), GeM etc.
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