Lok Sabha Question No. 370 (UNSTARRED), answered on 2019-11-19
Subject: Market Intervention Scheme
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Sadashiv Kisan Lokhande, Bharti Pravin Pawar

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## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO.370

TO BE ANSWERED ON THE 19 TH  NOVEMBER, 2019

## MARKET INTERVENTION SCHEME

370.   SHRI SADASHIV KISAN LOKHANDE: DR. BHARATI PRAVIN PAWAR:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (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?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

- (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.

## Sanctioned issued under MIS during last three years

| S.N.   | Commodity      | State             | Market Intervention Price (MIP) (Rs. Per MTs.)   | Sanctioned Qty (in MTs.)   | MIP Value (Rs in Lakhs)   |
|--------|----------------|-------------------|--------------------------------------------------|----------------------------|---------------------------|
|        | 2016-17        |                   |                                                  |                            |                           |
| 1      | Grapes         | Mizoram           | 42,000                                           | 3,800                      | 1596.00                   |
| 2      | Onion          | Karnataka         | 6240                                             | 1,00,000                   | 6240.00                   |
| 3      | Onion          | Telangana         | 7070                                             | 5,000                      | 353.50                    |
| 4      | Arecanut-Chali | Karnataka         | 2,51,000                                         | 28,000                     | 70280.00                  |
| 5      | Arecanut-Red   | Karnataka         | 2,70,000                                         | 12,000                     | 32400.00                  |
| 6      | Oil Palm FFB   | Tamil Nadu        | 7650                                             | 1,000                      | 76.50                     |
| 7      | Ginger         | Arunachal Pradesh | 8570                                             | 12,675                     | 1086.25                   |
|        | 2017-18        |                   |                                                  |                            |                           |
| 8      | Potato         | Uttar Pradesh     | 4,870                                            | 1,00,000                   | 4870.00                   |
| 9      | Red Chilli     | Telangana         | 50,000                                           | 33,700                     | 16850.00                  |
| 10     | Red Chilli     | Andhra Pradesh    | 50,000                                           | 88,300                     | 44150.00                  |
| 11     | Potato         | Nagaland          | 6,000                                            | 6,600                      | 396.00                    |
| 12     | Turmeric       | Andhra Pradesh    | 55,720                                           | 12,100                     | 6742.12                   |
| 13     | Garlic         | Rajasthan         | 28,600                                           | 10,000                     | 2860.00                   |
| 14     | Onion          | Madhya Pradesh    | 5,867                                            | 3,25,500                   | 19097.09                  |
| 15     | Onion          | Madhya Pradesh    | 5,867                                            | 3,25,500                   | 19097.09                  |
| 16     | Onion          | Rajasthan         | 3,650                                            | 20,000                     | 730.00                    |
| 17     | Potato         | Uttar Pradesh     | 5,490                                            | 2,00,000                   | 10980.00                  |
|        | 2018-19        |                   |                                                  |                            |                           |
| 18     | Garlic         | Rajasthan         | 32,570                                           | 1,54,000                   | 50157.80                  |
| 19     | Onion          | Rajasthan         | 6,180                                            | 2,60,000                   | 16068.00                  |

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Annexure A