Q. Consider the following statements regarding Market Intervention Scheme (MIS):
1.It is implemented for procurement of perishable and horticultural commodities.
2.It is implemented when there is at least 10 per cent increase in production or 10 per cent decrease in a normal year.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

Explanation: The Market Intervention Scheme (MIS) is similar to MSP, which is implemented on the request of state governments for procurement of perishable and horticultural commodities in the event of fall in market prices.

  • The scheme is implemented when there is at least 10 per cent increase in production or 10 per cent decrease in the ruling rates over the previous normal year.
  • Proposal of MIS is approved on the specific request of the state/UT governments, if the states/UTs are ready to bear 50 per cent loss (25 per cent in case of North-Eastern states) incurred on its implementation.

Source: TMH Ramesh Singh