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Evaluation of Market Intervention Schemes (MIS) in India

Author

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  • Brajesh Jha

    (Institute of Economic Growth, Delhi)

Abstract

Minimum Support Price is not announced for many agricultural commodities, but such commodities also require price support, and Market Intervention Scheme (MIS) is one example. The MIS practiced since 1983 is for variety of commodities; the present study specifically evaluates MIS for apple in Himachal Pradesh, garlic in Rajasthan and oil palm in Andhra Pradesh. Findings show that adhoc decision regarding its implementation cause delay in procurement and this often forces resource poor small farmers for distress sale. The need for MIS decreases with increase in density of rural road and regulated market in a region. Direct benefits associated with the scheme are not over the cost incurred in organizing it. The benefit-cost ratio may however increase with the certainty of MIS with transparent criteria. This will also reduce many problems associated with MIS.

Suggested Citation

  • Brajesh Jha, 2018. "Evaluation of Market Intervention Schemes (MIS) in India," IEG Working Papers 377, Institute of Economic Growth.
    • Handle: RePEc:awe:wpaper:377
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