<h1>Market intervention stabilizes chilli prices and enables government procurement with shared-loss support for farmer incomes.</h1> The governments deployed a Market Intervention Scheme establishing a procurement price, limited government procurement of a proportion of output, and a Centre-state loss-sharing mechanism; stakeholder consultations followed, markets responded with rising open-market prices and some traders offering above the procurement floor, and participants requested temporary suspension of active procurement while prices stabilized, resulting in improved farmer returns and short-term market equilibrium.