In a relief package to the hapless lot of potato farmers, the Uttar Pradesh government has decided to intervene in the market and purchase the produce directly from the farmers. Besides it has also decided to export potato in neighbouring states of Bihar, Madhya Pradesh and Rajasthan. The farmers would be given freight subsidy incase of sending potato to other states.
The major decision taken by the UP government for the potato farmers include increase its own purchase price, provision of transportation charges by the government and subsidy on marketing and export of potatoes. The cabinet also decided to give subsidy to private sector on marketing and production of fertilisers, bio-pesticides and certified seeds. These decisions would entail a burden of about Rs 110 crore on the state ex-chequer.
The state cabinet which met here on Wednesday, has also accepted the recommendations of the Agriculture Minister. Decision has been taken to increase the purchase price of potato from Rs 250 per quintal to Rs 300 per quintal under the market intervention scheme. This scheme would be immediately implemented as soon as Government of India’s consent for re-imbursement of losses is received. The increase in purchase price would involve an estimated expenditure of Rs 31.50 crore.
According to the cabinet decision, the state government would 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 of 500 km-long distance on exporting potato outside the State has also been lifted in the interest of the potato growers. The potato growers would also get a marketing subsidy on transportation of potato beyond a distance of 300 kms within the state and they would continue to get it for the next five years.
It may be mentioned that there has been bumper production of potato in UP for the third consecutive year.
