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Market Intervention Price Scheme (MIPS) for Farmers: An Overview

calendar10 Mar, 2022
timeReading Time: 3 Minutes

Market Intervention Price Scheme is the government-backed initiative that helps growers counter price deflation for their commodities during the peak period. With this scheme, farmers can ensure good sales despite stringent competition and price inflation.  

What are the Key objectives of MIPS Scheme?

The fundamental goal of MIPs is to prevent farmers from encountering severe price deflation for their products created due to massive production.

Other key objectives include; 

  • To ramp up the growth of agricultural producers and farmers’ income  
  • To create more jobs for growers and farmers and provide them financial stability
  • To escalate the employment volume at the taluk level

Why Market Intervention Price Scheme?

Agricultural items prices are dynamic in nature and thus subject to frequent changes. So there is a need to safeguard the growers and farmers against the sub-par sales of farms products by offering them a base level price.

An Overview on the Implementation of MIPS

  • This scheme comes into effect when there is at least a ten per cent increase in the rate of production or a 10 per cent decrease in the ruling rate range when contrasted with the previous year. 
  • The MIPS scheme covers Agri products that do not fall under other centrally sponsored schemes, Price support schemes, Minimum Support Prices. MIPS encompasses agricultural and horticultural products that are perishable and do not fall under any other scheme
  • Under the MIS scheme, the agri-based items are procured at a fixed MIPS, i.e. Market Intervention Price by the National Agricultural Cooperative Marketing Federation of India Ltd (aka NAFED). NAFED has secured its legal status under Multi-State Co-operative Societies Act. It was constituted to advocate cooperative marketing of agricultural products to aid the growers and farmers across India. 
  • NAFED is registered under the Multi-State Co-operative Societies Act. It was set up to promote Cooperative marketing of agricultural produce to benefit the farmers. The primary role of NAFED is to ensure continual procurement of farm products till the prices surpass the MIPS.
  • The implementation of MIPS is done as per the needs raised by the state government agencies via NAFED.

In some cases, this scheme is implemented as per the specific request of UTs or State Governments, where the loss will be shared by the State and Central Government on a 50:50 basis (75:25 in the N-E States).

In MIPS, Government does not allocate funds to each State. However, the Central Government shall share the losses as per the MIPS guidelines. The area for operation is confined to only the concerned State.

Eligible agricultural and horticultural products that fall under MIPS

  • Apple 
  • Oranges
  • Garlic
  • Coriander
  • Pepper
  • Mushrooms
  • Cloves
  • Malta
  • Pineapple

What is the procedure of obtaining the MIPS scheme? 

The MIP scheme is typically obtained via NAFED and agencies having the approval of the State Governments. Along with FCI, NAFED, Jute Corporation of India Ltd. (JCI), Competition Commission of India (CCI), and State Trading Corporation of India Limited (STC[1]) are also actively participating in MIPS as part of the centrally authorized platforms.

At the state level, state warehousing corporations, state-level marketing boards, state cooperative marketing federation, and state food and civil supplies departments are allied departments for MIS operation. 

To obtain MIPS, it has to be registered either under NAFED or respective state governments. 

Individuals or departments eligible to access MIPS

  • Farmers
  • Agricultural societies
  • Agriculture departments of all states
  • Registered Societies
  • Vegetable associations
  • Taluk Societies
  • Cooperative societies
  • Special MIPS in Kashmir

In 2019, the GOI decided to implement this scheme for apple growers, especially in Kashmir. The scheme was known as Special Market Intervention Price Scheme (SMIPS), which falls under the MIPS. Under this Scheme, Government does the mass procurement of apples at a farmer-friendly price. 

Salient Features of MIPS Scheme

  • MIPS cover the apple growers from the Kashmir territory. 
  • Allows procurement of the apples directly from the growers and aggregators
  • Projected profit is accounted for Rs 2000 crores for the growers.
  • Government agencies take charge of the apple procurement and transportation, i.e. no expenses for farmers whatsoever, 
  • The present worth of the scheme is Rs 8000 crores. 
  • Ensures Seamless enrolment process, collection of bank account details, and payment to beneficiaries owing to the involvement of the district administration.


Market Intervention Price Scheme came as a relief for farmers who often have trouble securing good pay for their produce, particularly during the peak period. There are significant numbers of farmers in India who face the same issue throughout the year.  The advent of this scheme shall provide them with a good profit margin for their crops.

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