Market intervention scheme
Also called: MIS · Topic: Agricultural Marketing, MSP, Buffer Stocks and PDS · NCERT: Beyond NCERT
Meaning
The market intervention scheme (MIS) lets the government buy perishable crops that have no MSP, such as fruits and vegetables, when their prices crash. It is used only now and then (ad hoc), usually at a state's request. The Centre and the state share any loss from the operation. It is one of the three parts of PM-AASHA (2018), and it protects growers of perishables from distress sales in a glut.
Example
A bumper harvest makes the market price of a fruit crash below the cost of production in one state. Under MIS, agencies buy the produce at a set intervention price, and the Centre and the state share the loss.
Don't confuse with
- Price support scheme (PSS): PSS covers MSP crops (pulses, oilseeds, copra) and buys them at MSP. MIS covers perishables that have no MSP.
Related concepts
- Procurement
- Buffer stock
- Buffer stock norms
- Operational stock
- Strategic reserve
- Open-ended procurement
- Centralised procurement
- Decentralised procurement
- Price support scheme
- Price deficiency payment