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UP potato prices rise 300 per cent in one month

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Siddharth Kalhans Lucknow
Last Updated : Jan 20 2013 | 8:02 PM IST

Prices of potato have surged 300 per cent in the last one month in Uttar Pradesh (UP). The current rates of the crop in the wholesale market, at Rs 10 a kg, are highest in the last five years in the state, traders said.

Due to the heavy demand for potato from neighbouring states, the horticulture department was finding it difficult to meet the storage target set by the state government, an official said.

The government had set a target of storing 93 lakh tonnes of potato this year. However, the state has managed to store only 60 lakh tonnes of the crop till date, the official said.

According to the official, the total production of potato in UP this year has been to the tune of 110 lakh tonnes, while this was 130 lakh tonnes in the previous season.

The rates of potato in the wholesale as well as the retail market were low in the beginning of the season but gradually it moved up due to the increased demand from other states and freight subsidy provided by the state government for the movement.

The state government this year decided to provide a transport subsidy of Rs. 25 per quintal or 25 per cent of the transport charges, whichever is less, to the potato growers.

Besides, the restriction on exporting potato 500 km-long outside the state has also been lifted in the interest of the potato growers.

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The potato growers would also get a marketing subsidy on transportation of potato beyond a distance of 300 km for the next five years.

These efforts of the government helped in the export of potato to Madhya Pradesh, Rajasthan, Bihar and other states resulting in the increase of the rate in the domestic market.

At present, the rate of potato in the UP wholesale market is Rs 650-750 per quintal, while in the retail market it is Rs 1,000 per quintal.

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First Published: Apr 01 2009 | 12:50 AM IST

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