(a) whether Market Intervention Scheme protects the food growers from making distress sale in the event of bumper crop production when the prices fall below economic levels and cost of production;
(b) if so, the details thereof and the details of the provisions in this regard; and
(c) the names of the markets that have provided such security to the food growers and the number of farmers who have benefitted from this during the last three years?
MINISTER OF AGRICULTURE AND FARMERS WELFARE
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(a) & (b): Market Intervention Scheme (MIS) is implemented for procurement of horticultural/agricultural commodities which are perishable in nature and are not covered under the Price Support Scheme. The objective of intervention is to protect the growers of these commodities from making distress sale in the event of a bumper crop during the peak arrival period when the prices tend to fall below economic levels and cost of production. The condition is that there should be either at least a 10 percent increase in production or a 10 percent decrease in the ruling market prices over the previous normal year. The Market Intervention Scheme (MIS) is implemented at the request of a state / UT government which is ready to bear 50 percent of the loss (25 percent in case of North-Eastern States), if any, incurred on its implementation. The extent of total amount of loss to be shared on a 50:50 basis between the central government and the state government is restricted to 25 percent of the total procurement value which includes cost of the commodity procured plus permitted overhead expenses.
(c): Based on the proposal received from State/ UT Governments as per extant guidelines of Market Intervention Scheme (MIS), sanction is accorded for implementation of MIS in the State during last three years is enclosed at Annexure A. Under MIS, the procurement is undertaken by the State Procuring Agencies designated by the State/ UT Governments throughout the State/UT. After the implementation of the scheme, State Procuring Agency submits the details of accounts to the Central Government through State/ UT Government for reimbursement of central share of losses, if any. The Central Government, after duly vetting of the accounts submitted by the State Governments, reimburse the Central Share of loss to State Procuring Agency.