In a move that will give relief to Uttar Pradesh farmers forced to sell potatoes at a loss due to a bumper harvest, the Agriculture Ministry has approved the procurement of up to 1,00,000 tonnes of the tuber in the State for the 2016-17 crop season.
The procurement will be carried out by a State agency under the Market Intervention Scheme (MIS), at ₹4,870 a tonne , according to an official release.
The Ministry will provide an additional ₹1,217.50 per tonne or the actual amount, whichever is less, for overhead expenses, such as transportation charges, mandi tax, and godown charges, the release stated. “Purchase centres/areas will be decided by the state government in consultation with the State agency. The potatoes will be purchased from cooperative societies, farmers’ organisations or directly from farmers to eliminate the possibility of middlemen taking advantage of the scheme,” the release added.
Farmers across Western Uttar Pradesh have been demanding that the government provide a minimum support price (MSP) for their produce as they were not able to realise even the cost of their production.
Some farmer groups such as the Bharitya Kisan Union, Kisan Shakti Sangh and the Bhartiya Kisan Andolan made a case for an MSP of ₹10 a kilogram of potato (against the support of ₹4.87 a kg ).
Last month, farmers in West Bengal were offered ₹4.60/kg for up to 28,000 tonne of potatoes by the State following which prices in wholesale mandis rose.
“The procured stocks in UP will be disposed of in the open market to ensure the maximum realisable price. If necessary, this can also be sold to processing units within the state. The State agency would also make efforts to export the procured potatoes after processing,” the release said.
In order to avoid recycling, the stock will not be sold in the same market/state from where it has been procured during the period of the scheme. However, if the prices are better it can also be sold locally, it added.