Ministry of Agriculture & Farmers Welfare
azadi ka amrit mahotsav

Remunerative Price of Perishable Agriculture Produces

Posted On: 04 APR 2025 3:52PM by PIB Delhi

Agriculture marketing is a State subject. Domestic prices of perishable agriculture produces are mainly influenced by factors such as demand and supply, trade policies, effective taxes and duties, etc. The Central Government takes necessary measures as and when required to balance the demand and supply scenario of agriculture and horticulture produces in the domestic market and ensure remunerative prices to the farmers through appropriate policy measures and market intervention scheme.

To safeguard farmers from market volatilities, the Government takes various measures through different schemes and programmes. These include Market Intervention Scheme (MIS) for perishable horticultural and agricultural commodities; Integrated Scheme for Agriculture Marketing (ISAM) to promote- creation of scientific storage capacity; National Agriculture Market (e-NAM) online trading platform for better price discovery through competitive online bidding etc. Nationwide information network system for reporting and dissemination of market price information on agriculture commodity is provided through Agmarknet web portal. Under Agriculture Infrastructure Fund (AIF), Govt. provides a medium-long term loan facility for investment in viable projects for post-harvest market infrastructure including warehousing facility and community farming assets through interest subvention and financial support.

To provide remunerative price to the farmers, Ministry of Agriculture & Farmers Welfare implements Market Intervention Scheme (MIS), a component under Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA), for procurement of agricultural and horticultural commodities which are perishable in nature and are not covered under the Price Support Scheme (PSS). 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 the cost of production. The scheme 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.

Government has introduced a new component of Price Differential Payment (PDP) under Market intervention scheme (MIS) from 2024-25 season for direct payment of the price difference between the Market Intervention Price (MIP) and the selling price to the farmers of perishable crops. States/UTs have an option to choose either to do physical procurement of the crop or to make the differential payment between the MIP & Sale Price to the farmers. Further, from 2024-25 season, Government added another component under Market intervention scheme for reimbursing the Storage and Transportation cost of TOP crops (Tomato, Onion and Potato) to central nodal agencies for transporting them from the producing state to consuming states in the interest of the farmers.

This information was given by the Minister of State for Agriculture and Farmers’ Welfare Shri Ramnath Thakur in a written reply in Rajya Sabha today.

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