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LATEST NEWS UPDATES | Government to focus on raising vegetable output to contain price hike

Government to focus on raising vegetable output to contain price hike

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published Published on Mar 14, 2012   modified Modified on Mar 14, 2012
-PTI

Expressing concern over price rise in fruit and vegetables, the government today said it will focus on addressing the issue by bringing more area under horticulture as well as raising productivity levels. 

"We are more or less comfortable in cereal production. The growth rate in horticultural and animal products is good and better than cereals. But we see price rise in horticulture commodities. This is the area of concern," Agriculture Secretary P K Basu told reporters here. 

"The government will concentrate on addressing this issue this year, which has been declared as 'the Year of Horticulture," he added. 

The Secretary pointed out that the country grows 250 million tonnes (MT) of foodgrains in 123 million hectare, while 240 MT of horticultural crops are grown in just 22 million hectares. 

"Productivity per se in horticultural crops is very high but still there is a gap. The best indicator of the gap is price and price has not behaved the way it has to. This year, it is ok but we have to protect ourselves from shocks in the future," he observed. 

Basu noted that the solution to contain price rise lies in improving productivity of fruits, vegetables and animal products, and diversification to horticulture from other crops. 

Noting that price rise is primarily coming from vegetables, he said that the National Vegetable Scheme initiated since last year to enhance production of vegetables has started yielding results in seven states. 

"Price rise is coming from vegetables and I am confident the vegetable initiative will take care," he said. 

Basu said that the government targets to add at least one city in each state under the Scheme. "Hopefully, as we keep on covering more cities under the scheme, we will be able provide good price to farmers as well as consumers," he said. 

According to official data, the wholesale price of tomato has risen to Rs 11.40 per kg in the national capital today, as compared to kg 9.35 per in the year-ago period. Similarly, prices potato has risen marginally to Rs 6 per kg and onion was available at Rs six per kg in the Azadpur mandi. 

However, in some of the retail markets, prices of these vegetables are ruling more than double with onion and potato prices ruling at up to Rs 20 per kg each and tomato at Rs 25 per kg. The prices of other seasonal veggies are ruling at more than Rs 40 a kg in the city.

The Economic Times, 13 March, 2012, http://economictimes.indiatimes.com/news/economy/agriculture/government-to-focus-on-raising-vegetable-output-to-contain-price-hike/articleshow/12251421.cms


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