Aparna Lucknow, India 601 Questions 0 Answers 0 Best Answers 678 Points View Profile Aparna Asked: October 11, 20212021-10-11T19:14:50+05:30 2021-10-11T19:14:50+05:30In: Law What is Market Intervention Scheme? What is Market Intervention Scheme? agriculturecurrent affairs Share Facebook 1 Answer Recent Rahul 0 Questions 518 Answers 176 Best Answers 2k Points View Profile Rahul BRIGHT 2021-10-11T19:19:03+05:30Added an answer on October 11, 2021 at 7:19 pm Context: Amidst the lockdown, the Union government has asked all States / UTs asked to implement Market Intervention Scheme to ensure remunerative prices to farmers for perishable crops. About: The Market Intervention Scheme (MIS) is an ad-hoc scheme under which are included horticultural commodities and other agricultural commodities which are perishable in nature and which are not covered under the minimum price support scheme. It aims to intervene the market to protect the growers of their 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. In order to protect the growers of these horticultural/agricultural commodities from making distress sale in the event of bumper crop during the peak arrival period when prices fall to very low level, Government implements M.I.S. for a particular commodity on the request of a State Government concerned. Losses suffered are shared on 50:50 basis between Central Government and the State. Market Intervention Scheme works in a similar fashion to Minimum Support Price based procurement mechanism for food grains. Minimum Support Price (MSP): Minimum support price (MSP) is one of the instruments of Agricultural Price Policy (APP). APP basically means government intervention to influence agricultural productivity and/or farm input prices. The kind and degree of intervention (or the policy instruments and their objectives) vary with the stage of agricultural development. The basic intent of announcing MSP before the sowing season is to help farmers take sowing decision keeping in mind that if they are not able to get a reasonable price by selling in the market, at least they will be able to get the MSP. In that sense, MSP is an assured or guaranteed price (insured price). 0 Reply Share Share Share on Facebook Share on Twitter Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer. Related Questions What is Pathalgadi? What is Bodo Accord?