Market Intervention Scheme

Relevance: Prelims: Economy

Why in news?

• The Centre has now directed all the States and Union Territories to implement the Market Intervention Scheme to ensure good prices for perishable crops.

About:

Market Intervention Price Scheme - INSIGHTSIAS

• The Market Intervention Scheme is meant to protect the growers of perishable commodities from making distress sales, especially at times when prices fall below the cost of production.

• The scheme can be invoked by a State which is willing to bear half the losses of procurement, with the remainder being borne by the Centre, whenever there is a 10% fall in ruling market prices in comparison to the previous normal year.

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