{"id":3755,"date":"2025-01-08T11:20:09","date_gmt":"2025-01-08T05:50:09","guid":{"rendered":"https:\/\/indianlawsociety.com\/?p=3755"},"modified":"2025-01-13T18:33:54","modified_gmt":"2025-01-13T13:03:54","slug":"supporting-indian-agriculture-the-role-of-the-market-intervention-scheme-mis","status":"publish","type":"post","link":"https:\/\/karma.law\/insights\/law-library\/supporting-indian-agriculture-the-role-of-the-market-intervention-scheme-mis\/","title":{"rendered":"Supporting Indian Agriculture: The Role of the Market Intervention Scheme (MIS)"},"content":{"rendered":"<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><span class=\"ng-star-inserted\">The agricultural sector is the backbone of the Indian economy, providing livelihoods for a significant portion of the population. However, it is also a sector prone to fluctuations due to various factors, including weather patterns and market dynamics. To mitigate these challenges, the Indian government has implemented several schemes and policies, one of the most important being the Market Intervention Scheme (MIS). This piece explores the MIS and its significance in supporting Indian agriculture.<\/span><\/p>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">What is the Market Intervention Scheme (MIS)?<\/span><\/strong><\/p>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><span class=\"ng-star-inserted\">The MIS is a government initiative designed to protect farmers from distress sales. These sales often occur during bumper crop seasons when the market is flooded with produce, leading to a sharp decline in prices. The scheme aims to intervene in the market to ensure that farmers receive fair prices for their commodities, particularly horticultural products.<\/span><\/p>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Objectives of the MIS in the Agricultural Sector<\/span><\/strong><\/p>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><span class=\"ng-star-inserted\">The MIS serves several key objectives within the agricultural sector:<\/span><\/p>\n<ul class=\"ng-star-inserted\" style=\"text-align: justify;\">\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Protecting Farmers:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0The scheme aims to prevent farmers from being forced to sell their produce at prices below the cost of production.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Stabilizing Prices:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0By intervening in the market, the MIS helps to stabilize prices and reduce volatility, creating a more predictable market environment.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Ensuring Fair Returns:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0The scheme ensures that farmers receive fair returns for their hard work and investments.<\/span><\/p>\n<\/li>\n<\/ul>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">How the MIS Works<\/span><\/strong><\/p>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><span class=\"ng-star-inserted\">The MIS operates as a safety net for farmers, particularly those growing horticultural crops. When prices of these commodities fall below economic levels, the government steps in to procure the produce at a predetermined price. This intervention helps to:<\/span><\/p>\n<ul class=\"ng-star-inserted\" style=\"text-align: justify;\">\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Prevent Distress Sales:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0Farmers are not forced to sell their produce at throwaway prices.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Maintain Market Balance:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0The scheme helps to balance the supply and demand in the market.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Support Rural Livelihoods:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0By ensuring fair prices, the MIS contributes to the economic well-being of farmers and rural communities.<\/span><\/p>\n<\/li>\n<\/ul>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Financial Assistance and Sharing Pattern<\/span><\/strong><\/p>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><span class=\"ng-star-inserted\">The financial burden of the MIS is shared between the Central and State governments. The sharing pattern is as follows:<\/span><\/p>\n<ul class=\"ng-star-inserted\" style=\"text-align: justify;\">\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">General States:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0The loss is shared on a 50:50 basis.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">North-Eastern States:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0The loss is shared on a 75:25 basis, with the Central government bearing a larger share.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Maximum Loss:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0The total loss borne by the government is capped at 25% of the total procurement value.<\/span><\/p>\n<\/li>\n<\/ul>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Eligibility and Implementation<\/span><\/strong><\/p>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><span class=\"ng-star-inserted\">The MIS is available to states and union territories that agree to share the losses as per the prescribed pattern. The scheme is primarily focused on horticultural commodities. To initiate the MIS, the State or UT government needs to submit a proposal to the Central government, detailing the specific commodity and the need for intervention. The Department of Agriculture &amp; Cooperation manages the scheme, with the Joint Secretary, Cooperation Division, acting as the main point of contact.<\/span><\/p>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">The MIS in the Context of Indian Agriculture<\/span><\/strong><\/p>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><span class=\"ng-star-inserted\">The MIS is a crucial component of India&#8217;s agricultural policy, complementing other initiatives like the Minimum Support Price (MSP) system. While the MSP primarily focuses on staple crops, the MIS addresses the price volatility of horticultural products. This is important because:<\/span><\/p>\n<ul class=\"ng-star-inserted\" style=\"text-align: justify;\">\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Horticulture is a Key Sector:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0Horticulture contributes significantly to the agricultural GDP and provides livelihoods to many farmers.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Price Volatility:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0Horticultural products are often more susceptible to price fluctuations due to their perishable nature and seasonal supply.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Farmer Empowerment:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0By ensuring fair prices, the MIS empowers farmers and encourages them to continue investing in agriculture.<\/span><\/p>\n<\/li>\n<\/ul>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Financial Aspects of the MIS<\/span><\/strong><\/p>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><span class=\"ng-star-inserted\">The provided data highlights the financial allocations and expenditures under the MIS:<\/span><\/p>\n<ul class=\"ng-star-inserted\" style=\"text-align: justify;\">\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">12th Plan Allocation:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0The proposed allocation for the 12th plan was \u20b91274.50 crores.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Actual Expenditure:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0The actual expenditure was \u20b9213.34 crores, which is 17% of the proposed allocation.<\/span><\/p>\n<\/li>\n<li class=\"ng-star-inserted\">\n<p class=\"ng-star-inserted\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Expenditure Trends:<\/span><\/strong><span class=\"ng-star-inserted\">\u00a0The expenditure varied across different years, with some years showing higher expenditure due to market conditions. For example, there was an excess expenditure of \u20b97.35 crores in 2014-15 due to sudden decrease of funds at RE stage.<\/span><\/p>\n<\/li>\n<\/ul>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><strong class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Conclusion<\/span><\/strong><\/p>\n<p class=\"ng-star-inserted\" style=\"text-align: justify;\"><span class=\"ng-star-inserted\">The Market Intervention Scheme is a vital mechanism for supporting the Indian agricultural sector. By providing a safety net for farmers during times of market distress, the scheme ensures fair prices, promotes market stability, and contributes to the overall economic well-being of the agricultural community. It is a testament to the Indian government&#8217;s commitment to supporting its farmers and ensuring the sustainability of the agricultural sector.<\/span><\/p>\n<p>\u00a0<\/p>\n\n\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\" hidden class=\"wp-block-file__embed\" data=\"https:\/\/karma.law\/insights\/wp-content\/uploads\/2025\/01\/Market-Intervention-Scheme.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of Market Intervention Scheme.\"><\/object><a id=\"wp-block-file--media-66685397-e0e1-40fe-a402-b20f9ea175d7\" href=\"https:\/\/karma.law\/insights\/wp-content\/uploads\/2025\/01\/Market-Intervention-Scheme.pdf\">Market Intervention Scheme<\/a><a href=\"https:\/\/karma.law\/insights\/wp-content\/uploads\/2025\/01\/Market-Intervention-Scheme.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-66685397-e0e1-40fe-a402-b20f9ea175d7\">Download<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"The MIS is a government initiative designed to protect farmers from distress sales. These sales often occur during bumper crop seasons when the market is flooded with produce, leading to a sharp decline in prices.","protected":false},"author":1,"featured_media":5861,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":""},"categories":[355,25,49],"tags":[389,392,386,391,388,394,387,390,393],"class_list":{"0":"post-3755","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-agriculture-and-cooperation","8":"category-law-library","9":"category-schemes-and-yojanas","10":"tag-agricultural-policy","11":"tag-crop-prices","12":"tag-farmer-support","13":"tag-government-schemes","14":"tag-horticultural-commodities","15":"tag-indian-agriculture","16":"tag-market-intervention-scheme","17":"tag-mis","18":"tag-msp","19":"cs-entry","20":"cs-video-wrap"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Supporting Indian Agriculture: The Role of the Market Intervention Scheme (MIS)<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/karma.law\/insights\/law-library\/supporting-indian-agriculture-the-role-of-the-market-intervention-scheme-mis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Supporting Indian Agriculture: The Role of the Market Intervention Scheme (MIS)\" \/>\n<meta property=\"og:description\" content=\"The MIS is a government initiative designed to protect farmers from distress sales. 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