Font size:
Print
Government to Bear Vegetable Carrying Cost
Context:
In a bid to ensure that farmers receive a larger share of the retail prices of essential vegetables, the government has decided to reimburse the transportation costs of tomato, onion, and potato to state government agencies and cooperatives.
More on News
- This move aims to curb the role of private intermediaries, who often escalate costs, leading to a spike in retail prices without providing corresponding benefits to farmers.
- Under the Market Intervention Scheme of the Agriculture Ministry, the proposal seeks to extend transportation cost reimbursements to a wider range of state agencies, including the National Agricultural Cooperative Marketing Federation of India (Nafed) and the National Cooperative Consumers Federation of India (NCCF).
About Market Intervention Scheme (MIS)
This is a government initiative to protect farmers from distress sales of perishable agricultural and horticultural commodities during periods of significant price drops.
Objectives:
- Price Support: The MIS aims to provide price support to farmers when market prices fall significantly, particularly during bumper harvests.
- Prevent Distress Sales: It helps farmers avoid having to sell their produce at very low prices, ensuring they receive a more remunerative price for their crops.
Implementation Conditions:
- Trigger Conditions: The scheme is activated when there is at least a 10% decrease in market prices compared to the previous normal year or a 10% increase in production.
- State Government Request: The implementation of MIS requires a specific request from the State or Union Territory (UT) government, which must be willing to cover 50% of any losses incurred (25% for North-Eastern States).
Operational Mechanism:
- Market Intervention Price (MIP): A pre-determined quantity of commodities is procured at a fixed MIP by the National Agricultural Cooperative Marketing Federation of India (NAFED) and designated state agencies.
- Duration: The procurement continues until prices stabilise above the MIP or for a fixed period as specified.
- Funding: The central government shares the losses with state governments based on proposals submitted for approval.
- Commodities Covered: The MIS has been implemented for various commodities, including: Apples, Onions, Potatoes, Garlic, Tomatoes and Other horticultural products.
