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.
