States asked to implement Market Intervention Scheme
Part of: GS Prelims and GS-III – Economy
- 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.