In News:

To enhance the efficacy and wider adoption of MIS, the Government of India revised the guidelines in 2025.

Key Highlights:

• Objective: It aims to provide price support for perishable agricultural and horticultural commodities not covered under the Minimum Support Price (MSP) regime. It prevents distress sales during periods of excessive production and sharp price declines.
• Implementing Authority:The scheme is under the Department of Agriculture & Farmers’ Welfare and is now a component of the PM-AASHA (Pradhan Mantri AnnadataAaySanrakshan Abhiyan) umbrella scheme.
• Eligibility & Activation:

• Implemented on the request of State/UT Governments.
• Triggered when market prices fall by at least 10% compared to the average price of the previous normal year.

• Nature of the Scheme:

• Ad-hoc price support mechanism operational during sudden market crashes.
• Cost-sharing pattern between Centre and States is 50:50, and 75:25 for North-Eastern states.

• Procurement Provisions (Revised 2025):

• Procurement limit increased from 20% to 25% of total production of the crop.
• Direct Benefit Transfer (DBT) mode introduced: States may directly compensate farmers for the price difference between Market Intervention Price (MIP) and actual selling price.
• Physical procurement is optional under the revised scheme.

• Authorized Procurement Agencies:

• Central Nodal Agencies like NAFED (National Agricultural Cooperative Marketing Federation of India) and NCCF (National Cooperative Consumers’ Federation of India).
• Farmer Producer Organizations (FPOs), Farmer Producer Companies (FPCs), and state-nominated agencies can also participate in procurement, storage, and transportation.

• Support for Transportation and Storage:

• Reimbursement of storage and transport costs is provided by Central Nodal Agencies for TOP crops (Tomato, Onion, Potato).
• This provision helps balance regional price disparities between producing and consuming states.

• Significance:

• The revamped MIS strengthens market resilience for perishable crop producers.
• Enhances State participation, reduces post-harvest losses, and ensures remunerative returns through institutional and technological support mechanisms.