Govt directs Nafed to buy potatoes from UP

The Union government has asked the National Agriculture Cooperative Marketing Federation of India (Nafed) to purchase potato from Uttar Pradesh, where the commodity's price has crashed owing to a bumper crop.

According to sources, Nafed has been asked to purchase 50,000 tonnes at Rs 2.50 per kg. While the state government has agreed to purchase 50 per cent of the crop, the Centre would purchase 25 per cent.

However, sources said Nafed would start the procurement once it is decided who would purchase the remaining 25 per cent.

Referring to the precarious situation in UP, Union Agriculture Minister Sharad Pawar said in Parliament that Nafed has been asked to intervene in the matter and purchase the crop from UP.

Nafed could intervene even in West Bengal if the state so desired, Pawar added.

There is the problem of storing the crop as almost all the cold storages in UP are already full with potatoes, sources said adding that Nafed will have to shift the commodity to other states in case it procures from UP. "Nafed has to either bring the UP potatoes to Delhi or Bihar for storage or sale," a source said.

Potato prices have fallen by Rs 5-6 a kg in retail markets due to higher production in Uttar Pradesh, Gujarat and West Bengal. Unavailability of adequate storage is adding to the farmers' woes as they have no other option but to sell the crop at a throwaway price.

Potato production in the country is estimated at 293.46 lakh tonnes in 2007-08 crop season as compared to 270.20 lakh tonnes in the previous year. In producing belt of Agra (Uttar Pradesh), farmers are getting only Rs 150-170 per 52 kg bag as against Rs 450-475 last year for good quality potatoes.

BS Reporter adds: Potato is selling at Rs 1.25 to Rs 1.50 per kg in the Farukhabad and Etah mandis and Rs 2 a kg in Lucknow.

To provide relief to the potato growers, the state government decided to implement MIS (market interference scheme) and deployed three of its agencies "" Horticulture department, UP Agro Limited and Pradeshik Co-operative Federation "" to purchase one lakh tonnes of potato directly from the farmers. But, they have failed to procure even 1000 tonnes of potato.

Bhagwan Singh, state vice-president of Potato Traders Association, said the cold storage owners were accepting stocks from farmers paying higher price even though they have no space.

The storage fee has increased from Rs 115 per quintal to Rs 130 per quintal.