Big relief for potato growers

Uttar Pradesh increases purchase price under its market intervention scheme

Lucknow: The Uttar Pradesh Government on Wednesday announced increase in purchase price under its market intervention scheme, bear transportation cost and subsidy on distribution and export of potato, giving relief to potato growers, who are failing to realise cost of their production.

The government has also announced extending subsidy to the private sector on marketing and production of fertilisers, bio-pesticides and certified seeds.

The decisions taken by the U.P. Cabinet would entail a burden of about Rs 110 crore on the State exchequer.

As per the Cabinet decision, purchase price of potato would be increased from Rs 250 quintal to Rs 300 per quintal under the market intervention scheme, to be implemented after Centre’s consent.


Increase in purchase price would involve an estimated expenditure of Rs 31.5 crore. While the State Government would provide a subsidy of Rs 11 crore, payment of Rs 30 crore would be ensured through banks. The benefit would be available on the purchase of minimum one lakh tonnes of potato at a price of Rs 300 per quintal.

The government would also provide a transport subsidy of Rs 25 per quintal or 25 per cent of the transportation charges, whichever is less. An expenditure of Rs 1 crore on the transportation of 40,000 MT potato would be borne by the government.

Besides, the restriction of 500 km distance on exporting potato outside the State has also been lifted. The potato growers would also get a marketing subsidy on transportation of potato beyond a distance of 300 km, within the State for the next five years.

Accepting the recommendations made regarding the export of potato, the cabinet decided to provide a subsidy of Rs 1.5 per kg, or 25 per cent of the actual transport charges, whichever is less, to the potato growers by the Mandi Parishad.

It has also been decided to provide a brand promotion subsidy of 50 paise per kg on the potato being exported under the brand name of Taj.

Under the decision, the Mandi Parishad would issue licences to the firms interested in purchasing potato in excess of 1,000 MT. Electronic Spot Exchange System would soon be introduced in the sale-purchase of potato. - PTI

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