States asked to implement Market Intervention Scheme

States asked to implement Market Intervention Scheme

Part of: GS Prelims and GS-III – Economy 

In News:

• The Central government has directed all the States and Union Territories to implement the Market Intervention Scheme to ensure good prices for perishable crops. 

Important value additions:

The Market Intervention Scheme (MIS)

• It is meant to protect the growers of perishable commodities from making distress sales, especially at times when prices fall below the cost of production.
• The scheme can be invoked by a State if it is willing to bear half the losses of procurement. 
• The remaining loss is borne by the Centre, whenever there is a 10% fall in ruling market prices in comparison to the previous normal year. 
• The Department of Agriculture and Cooperation implements the scheme.
• The Central Government implements MIS for a particular commodity on the request of a state government concerned.