Market assurance scheme | Minimum Support Price (MSP) - Market Interventions - Key features of the Market Assurance Scheme typically include

Market assurance scheme

The Market Assurance Scheme (MAS) is a government initiative in India that aims to provide farmers with assurance regarding the marketing of their agricultural produce at a certain minimum price level. Under this scheme, the government assures farmers that if the market price of their agricultural produce falls below the minimum support price (MSP) or a predefined price level, the government will step in to procure the produce at the assured price.

Key features of the Market Assurance Scheme typically include:

1. Minimum Support Price (MSP): The government sets a minimum support price for various agricultural commodities based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). This price serves as a floor price, ensuring that farmers receive a certain minimum amount for their produce.

2. Procurement Assurance: Under the MAS, the government assures farmers that if the market price falls below the MSP, it will step in and procure the agricultural produce from the farmers at the MSP. This assurance provides a safety net for farmers, ensuring them a minimum income for their crops.

3. Procurement Mechanism: The government typically procures agricultural produce through designated agencies such as the Food Corporation of India (FCI) and state procurement agencies. Procurement operations are conducted in designated procurement centers or mandis.

4. Targeted Crops: The MAS often focuses on specific crops that are important for food security and the livelihoods of farmers. Commonly targeted crops include rice, wheat, pulses, oilseeds, and cotton, among others.

5. Market Interventions: In case of a fall in market prices below the MSP, the government intervenes in the market by procuring the produce, thereby stabilizing prices and ensuring that farmers are not adversely affected by market fluctuations.

6. Price Support: The government's procurement at MSP provides price support to farmers, encouraging them to continue agricultural production and invest in their farms without the fear of market price volatility affecting their income.

It's important to note that the specifics of the Market Assurance Scheme, including the crops covered, MSP rates, and procurement mechanisms, can vary based on government policies and announcements. Farmers and stakeholders typically receive information about the MSP and procurement details through official government channels, ensuring transparency and enabling farmers to make informed decisions about their agricultural activities.