Market Intervention Scheme (MIS)

Introduction 

The Market Intervention Scheme (MIS) is a Government of India agriculture scheme under the Ministry of Agriculture & Farmers Welfare. It was first implemented in 1983-84, on request from state governments. Under the umbrella of PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan), MIS aims to protect farmers when prices of perishable agricultural or horticultural produce fall sharply, especially during bumper harvests.

Here’s the problem MIS addresses: some crops – like tomatoes, onions, potatoes – don’t have Minimum Support Price (MSP) protection. When there is oversupply during the peak arrival period, market prices can plunge. Farmers may then be forced into “distress sale,” earning much less than cost of production. MIS is meant to stop that.

In plain words: MIS kicks in only when a State/UT government requests it, and certain conditions are met (e.g. a fall of at least 10% in market price from normal season) The scheme benefits farmers growing those perishable commodities. It helps them avoid heavy losses by either government procurement or by compensating them for the price‐difference.

Overview of the Scheme

Who launched & who implements it

• Launched by the Government of India, under the Ministry of Agriculture & Farmers Welfare.
• It’s a component of the integrated PM-AASHA scheme.
• Implementation is done by the central department (DA&FW), state/UT governments when they request activation, and by State Nodal Agencies. For certain tasks, Central Nodal Agencies like NAFED, NCCF, plus Farmer Producer Organisations (FPOs) or state-nominated agencies may be involved under recent guidelines.

Funding pattern

• Losses due to procurement or price intervention under MIS are shared between Centre and State. For general (non-North-Eastern) States the share is 50:50.
• For North-Eastern States, the share is 75% by Centre and 25% by State.

Sectors / components covered (coverage)

• MIS covers perishable agricultural / horticultural commodities (for example tomato, onion, potato, and other perishable crops), especially those which do not have MSP (Minimum Support Price) protection.
• It includes procurement of these commodities when conditions are met.
• As per revised guidelines, there is also an option for price-deficiency payment rather than physical procurement: States can pay farmers the difference between Market Intervention Price (MIP) and the selling price.
• Transportation and storage costs are reimbursable (especially for TOP crops – Tomato, Onion, Potato) when moving produce from producing to consuming states in cases of price difference.

Current status / recent changes

• The guidelines for MIS were revised in February 2025.
• Procurement/coverage limit under MIS increased from 20% to 25% of the production of the concerned crop.
• A trigger condition has been formalised: MIS intervenes only when market price of the commodity falls by at least 10% compared to the “normal” previous season.

Key bullets summary

• Implemented by: Ministry of Agriculture & Farmers Welfare (GOI), via State/UT governments and designated agencies.
• Funding share: 50:50 (Central-State) generally; 75:25 for North-Eastern States.
• Coverage: Perishable horticultural/agricultural produce without MSP; includes procurement or price difference payment; includes costs of transport/storage in some cases.
• Recent updates (2025): Under PM-AASHA, procurement limit raised to 25%; price drop threshold set at ≥10%.

Objectives 

The Market Intervention Scheme (MIS) was launched by the Government of India through the Ministry of Agriculture & Farmers Welfare in consultation with State and Union Territory governments. It is a price support programme meant to protect farmers who grow perishable agricultural and horticultural crops that are not covered under the Minimum Support Price (MSP) system. MIS is a central scheme, but it is activated only when a State/UT requests it.

Implementing agencies include the Department of Agriculture & Farmers Welfare at the central level, State Agriculture or Horticulture Departments, and designated procurement bodies such as NAFED or other central/state nodal agencies. These agencies carry out procurement, distribution, or price-deficiency payments depending on the situation.

Funding pattern is shared between the Centre and the State. According to official guidelines, losses are borne 50:50 for general states and 75:25 for North-Eastern and Himalayan states. This sharing helps ensure that both central and state governments remain equally invested in protecting farmer incomes.

Coverage under MIS focuses only on perishable crops like tomato, onion, potato, apple, or other fruits and vegetables that suffer sharp price drops during bumper harvests. The scheme supports either physical procurement at a fixed Market Intervention Price (MIP) or direct payment of the price difference to farmers. For example, if onion prices fall by more than 10% compared to the previous season, the state can request MIS, and farmers will either get a better price through procurement or be compensated for the loss.

As per revised 2025 guidelines, MIS is ongoing under PM-AASHA, with procurement limits raised from 20% to 25% of production, and formal triggers fixed at a ≥10% fall in market prices. This makes MIS a more structured safety net for farmers in distress situations.

At a glance

• Launched by: Ministry of Agriculture & Farmers Welfare, Government of India (with State/UTs).
• Implementing agency: DA&FW, State Departments, NAFED/other nodal agencies.
• Funding pattern: 50:50 (Centre:State) for most states; 75:25 for NE & Himalayan states.
• Coverage: Perishable horticultural/agricultural crops not under MSP; support through procurement or price deficiency payments.
• Current status: Ongoing; guidelines revised in 2025; part of PM-AASHA mission.

Key Features / Benefits 

MIS gives several benefits to farmers of perishable crops when markets turn bad. Below are its main features:

• Price-gap compensation option
  If the market price falls 10% or more compared to the previous “normal” season, States/UTs can ask for help. They can either physically procure the produce or pay farmers the difference between the Market Intervention Price (MIP) and what the farmer actually got.
• Expanded procurement limit
  The share of produce that can be procured under MIS has been raised from 20% to 25% of the crop’s production. This gives more leeway for helping farmers during surplus/low-price periods.
• Support for transportation & storage costs (especially TOP crops)
  For Tomato, Onion, Potato (TOP) crops, when there is a price differential between producing and consuming states, the central nodal agencies (e.g. NAFED, NCCF) are reimbursed for storage & transport costs. This helps reduce loss and cost for farmers. (Example: Transporting up to 1,000 tonnes of Kharif tomatoes from MP to Delhi is approved for reimbursement.)
• Option of direct payment into bank accounts
  States now have the choice to pay the price difference (MIP minus sale price) directly into farmers’ bank accounts, instead of doing physical procurement. This can be faster and logistically easier.
• Shared risk between Centre and States
  The cost-burden of loss under MIS is shared: 50% by the Centre and 50% by the State in most States; for North-Eastern States, Centre pays 75% and the State 25%.
• Focused on perishable crops not covered under MSP
  MIS only applies to agricultural/horticultural produce that is perishable (e.g. TOP crops) and that do not have MSP protection. This ensures help goes where there is no other safeguard.
• Helps prevent distress sales
  When there is a bumper crop and prices collapse, MIS ensures farmers are not forced to sell at very low rates just to avoid spoilage. This stabilises farmer income.
• Reduces losses from logistics & spoilage
  With support for storage & transportation, less produce gets wasted, and farmers can transport to consuming states or markets without bearing all the loss themselves.
• Broader participation in procurement
  Under revised guidelines, not only traditional nodal agencies (NAFED/NCCF) but also FPOs (Farmer Producer Organizations), FPCs, state-nominated agencies etc., can undertake procurement & handling under MIS. More agencies mean better reach.
• Integration with larger scheme (PM-AASHA)
  MIS is now officially a part of PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan). This gives better alignment with other price and market policies.

Eligibility Criteria 

To benefit under MIS, one must satisfy certain criteria. Also, some documents are mandatory. The scheme is triggered only under certain conditions.

Who can benefit / apply

• Farmers
  • Must be growing perishable agricultural or horticultural produce not covered under MSP.
  • Produce must be in a State/UT that has requested MIS implementation. The State government must agree and take responsibility.
  • Price drop must be at least 10% compared to the previous normal season (for that State/UT) for that commodity.
    
    
• Farmer Producer Organizations (FPOs), Farmer Producer Companies (FPCs), State-nominated agencies, Central nodal agencies
  • From revised guidelines, they can act as procurers under MIS (for example for TOP crops). So they need to be legally registered entities, able to do procurement, storage, transportation etc.
  • They must follow the procedural norms of MIS when they are involved. (No separate elaborate eligibility for FPOs in MIS guidelines found beyond being a recognized/registered entity)
• Special categories (States / Regions)
  • For North-Eastern States and Himalayan / special areas, cost sharing is different (Centre bears 75%, State 25). That makes those States eligible under adjusted terms.

Not Eligible / Exclusions

• MIS does not cover commodities that already have MSP (Minimum Support Price).
• It’s only triggered if the State/UT requests implementation and meets the condition of price drop. Without both, MIS doesn’t activate.

Mandatory documents / proof

The official MIS documents / revised guidelines don’t give a full beneficiary-wise list like “farmer must submit Aadhaar, land record, etc.” in published MIS notification. What they do mention (or imply) includes:

• Proof of produce (commodity) and market price drop (prevailing market price vs previous normal year).
• Bank account details of farmer for direct benefit payment option.
• State government’s proposal/request to implement MIS, including estimates of loss, likely procurement etc. (that is required from the State/UT). 

Application Process

Below is a likely flow, drawn from official guidelines, of how MIS gets applied and implemented in a State. For farmers / producer bodies / agencies, much of this happens via State nodal agencies.

1. State/UT monitors market & price conditions
   • The State government tracks whether a perishable commodity (e.g. tomato, onion, potato) has had a price drop of at least 10% compared to its “previous normal season.”
   • Also checks if production has increased / bumper arrival causing supply glut.
2. State/UT submits a proposal to the Department of Agriculture & Farmers Welfare (DA&FW), Government of India
   • The proposal must include: estimated quantity of commodity needing support; proposed Market Intervention Price (MIP); how the procurement or price-deficiency payment would work; which designated procurement agency will be used.
   • Must be submitted before the intended date of scheme activation (often a lead time is specified – some documents say at least 15 days before envisaged start)
3. Committee / Central Approval
   • DA&FW examines the State proposal. If it meets the MIS criteria (price drop ≥10%, State ready to bear its share of loss, designated agencies in place), DA&FW gives formal sanction.
   • Terms like how long the scheme will run, how much quantity can be procured (also ceiling on % of production – now 25%) are agreed.
4. Designation of Procurement / Nodal Agency & Logistics Setup
   • State names which agency / agencies (cooperative societies, FPOs, nodal agency) will do procurement OR implement price-deficiency payment.
   • Ensure infrastructure for storage, transport, auction or sale of procured stock, quality norms etc.
5. Farmer / Beneficiary Level
   • Once the scheme is activated, farmers supply the eligible commodity to the designated agency (or opt for price-deficiency payment route depending on scheme in that State) at the fixed MIP or get surplus compensation.
   • Farmers need to submit proof of produce quantity / quality (meeting Fair Average Quality norms), and bank account details for payment.
6. Verification & Audit
   • The state agency verifies supply, quality, invoices, weighing etc. Some field inspections or audits to ensure supplies are genuine. DA&FW may ask for audited accounts for reimbursement of losses.
7. Release of Assistance / Payments
   • If physical procurement: payment to farmers by procurement agency.
   • If price-deficit route: direct payment of difference (up to permissible % of MIP) into farmer’s bank account.
   • Central share of loss is reimbursed to the State after proper documentation / audit.
8. Duration & Closure
   • Typically MIS is implemented for a specific period (often not more than 30 days or till prices stabilize above MIP).
   • Procured stocks are not held beyond a set period (often 3 months) before disposal.

Tips to Avoid Common Mistakes

• Always check that name and bank account details match official documents (Aadhaar, land records), so payments don’t get delayed.
• Submit correct proof of price drop or market price – wrong market data or outdated “previous normal season” comparisons can wreck eligibility.
• Keep your produce meeting the required quality norms (Fair Average Quality, etc.) – poor quality may lead to rejection.
• Apply (or ensure State proposal is submitted) before the deadline or date on which you plan to deliver produce; MIS activation has a limited time window.

Challenges or Limitations 

Like any support program, the Market Intervention Scheme (MIS) has its own set of challenges and limitations. These often come up in official reviews and in the way States and farmers use the scheme on the ground. The good news is that many of these hurdles can be managed with simple precautions.

Short implementation window

• Challenge: MIS is generally activated for a limited period (about 30 days or until prices stabilize). Farmers who miss this window often cannot benefit.
• What to do: Stay in touch with your local agriculture or horticulture office. They usually announce MIS activation in advance, so you can plan harvest and supply accordingly.

Delays in verification and payment

• Challenge: Verification of produce, quality checks, and paperwork can delay payments.
• What to do: Keep documents like Aadhaar, land records, and bank details updated and ready. Make sure produce meets Fair Average Quality (FAQ) norms to avoid back-and-forth.

Budget and quantity caps

• Challenge: MIS has quantity ceilings (e.g., support is usually limited to 25% of marketable surplus). Once the limit is reached, further procurement is not covered.
• What to do: Deliver produce early in the procurement cycle. Keep a check on announcements about the allocated quota for your crop.

Mismatch in documents

• Challenge: Many farmers face rejection because their names on bank accounts, Aadhaar, and land records don’t match.
• What to do: Cross-check all documents beforehand. If there is any spelling difference, correct it at your local bank or revenue office before supplying it under MIS.

Storage and disposal issues

• Challenge: Sometimes State agencies struggle with storage or disposal of procured stock, which slows down the process.
• What to do: Farmers can avoid this by supplying smaller batches promptly and ensuring proper grading and packaging to reduce wastage.

Uneven awareness

• Challenge: Not all farmers know when MIS is activated in their area, leading to missed opportunities.
• What to do: Keep contact with local cooperatives, FPOs, and agriculture officers who often get the official notice first. Some States also publish MIS alerts on their websites or newspapers – watch for those.

Limited crop coverage

• Challenge: MIS covers only certain perishable and horticultural crops, not all farm produce.
• What to do: Check the official list of crops eligible in your State. For non-covered crops, explore other schemes like MSP operations, crop insurance, or State-specific interventions.

Common mistakes during supply

• Challenge: Farmers sometimes bring produce without proper cleaning, grading, or weighing slips, which leads to rejection.
• What to do: Follow the basic guidelines shared by procurement agencies – sorted, graded, and properly packed produce is less likely to be rejected.

These challenges do not mean the scheme is ineffective. They simply highlight areas where farmers and implementing agencies need extra care. By keeping documents updated, staying alert to announcements, and coordinating with local offices, most of these limitations can be managed smoothly.

Government Support & Future Outlook 

The Market Intervention Scheme (MIS) is not a stand-alone support. Official notes from the Department of Agriculture highlight that it works best when linked with other agri missions. For example, crops covered under MIS often also fall within the Mission for Integrated Development of Horticulture (MIDH), and awareness campaigns are carried through ATMA (Agricultural Technology Management Agency) at the district level. In some states, MIS procurement is tied to farmer databases already used under PM-KISAN and insurance checks under PMFBY (Pradhan Mantri Fasal Bima Yojana), making it easier to verify genuine beneficiaries.

This convergence matters in practice. A farmer’s produce might be sold under MIS when prices crash, while crop losses on the unsold part are cushioned through PMFBY. At the same time, if that farmer’s FPO receives capacity-building support under RKVY (Rashtriya Krishi Vikas Yojana) or food processing help through PM-FME, the group can reduce wastage and add value before selling. In short, linking MIS with other missions creates a safety net that covers both income support and long-term stability.

On the future front, MIS continues as an ongoing scheme under the Department of Agriculture & Farmers Welfare, with periodic revisions in cost norms and crop lists announced through official press notes. States are expected to strengthen digital tracking of beneficiaries and align MIS procurement with e-governance tools already used for MSP operations. This shows a clear policy direction: convergence of MIS with other farmer-centric schemes to make the support more timely and transparent.

Conclusion 

The Market Intervention Scheme (MIS) plays an important role in protecting farmers from sharp price falls in perishable and horticultural crops. By stepping in when market demand weakens, the scheme ensures that producers, FPOs, and SHGs are not forced to sell their harvest at distress rates. The main beneficiaries are small and marginal farmers who often depend on seasonal crops for their income. If you are interested, the first step is to check the eligibility criteria, gather the required documents, and either apply through your state agriculture department or visit the nearest local agriculture office for guidance. Remember, details on crop coverage, funding share, and procurement process are updated from time to time, so always verify the latest information on the official Ministry of Agriculture portal or helpline before applying. 

Explore detailed resources on this scheme and the full suite of programmes at ALL ABOUT AGRICULTURE. For one-on-one assistance, call us at +91 8484002620.