Question : FALL IN POTATO PRICE



(a) whether the prices of vegetables including potato has registered a rapid slide in the wholesale markets and farmers are compelled to sell the crop at a price lower than the cost of production; and

(b) if so, the corrective steps taken by the Government in this regard?

Answer given by the minister


MINISTER OF THE STATE IN THE MINISTRY OF AGRICULTURE AND MINISTER OF THE STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (PROF. K.V. THOMAS)

(a): The prices of vegetables including potato in the wholesale markets show a fluctuating trend. Details of monthly wholesale price index of vegetables is annexed.

(b): The Department of Agriculture & Cooperation has been implementing two Centrally Sponsored Schemes namely (i) Technology Mission on Integrated Development of Horticulture in North Eastern States including Sikkim, Uttarakhand, Jammu & Kashmir and Himachal Pradesh (TMNE) and
(ii) National Horticulture Mission (NHM) in the remaining States of the country for enhancing horticulture production, wherein end to end approach is adopted covering production, protection, post harvest management and marketing to assure appropriate returns to farmers. Besides Department of Agriculture & Cooperation is also implementing a scheme namely Market Intervention Scheme (MIS) for procurement of agricultural and horticultural commodities which are generally perishable in nature. The MIS is implemented on the specific request of the State Government who are willing to share the loss on implementation of the scheme with Central Government on 50:50 basis (in case of North Eastern State, the ration is 75:25). However, the losses are restricted to the 25% of the procurement cost or actual loss which ever is less. The MIS is implemented with the objective to provide remunerative price to the farmers in case of glut in production where the prices rule below the cost of production.

During the current crop season, the Government of West Bengal and UP requested the Department of Agriculture and Cooperation for implementing MIS of potato. The Department has sanctioned the MIS for procurement of 9.00 lakh MT and 1.00 lakh MT of potato in West Bengal and UP respectively at the Market Intervention Price (MIP) of Rs.300/- per quintal.