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LATEST NEWS UPDATES | Potato farmers in Gujarat demand financial package

Potato farmers in Gujarat demand financial package

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published Published on Dec 22, 2011   modified Modified on Dec 22, 2011
-The Business Standard
 
Faced with a supply glut, potato farmers in Gujarat headed to streets and dumped thousands of kilos of potato in Deesa, a major potato market in the state on Tuesday. Farmers demanded an intervention from the state government with a financial assistance to the farmers, who are facing a steep fall in the potato prices at Rs 1 per kg in recent weeks.

"We had approached the government about a couple of months back and explained them the gravity of the situation. But they failed to take necessary action and now the potato prices have fallen to as low as Rs 1 per kg in the wholesale market at Deesa," informed a farmer leader and potato trader, Ramanbhai Patel.

Deesa and Vijapur are the two major potato growing regions in the state with over 40,000 farmer families depending on potato cultivation.According to trader sources, nearly 1.5 million bags (a bag= 50kg) of last years' crop are lying in the cold storages at Deesa, while fresh arrivals are likely to start in a couple of weeks. According to sources, over 125 million kgs of potatoes are lying in cold storages across Gujarat and are priced at Rs 1 per kg.

"The situation would only worsen as cold storages are almost full with potatoes and no takers in sight. There has been heavy supplies from Uttar Pradesh but there were very less buying happening at Deesa market," said a potato trader from Deesa.

The farmers had submitted a memorandum demanding relief package to the state agriculture minister Dilip Sanghani about two weeks back. Nearly 10,000 farmers joined a huge protest rally organised in Deesa and dumped about 25,000 bags of potatoes, a trader source informed. Potato prices at Deesa mandi touched a high or Rs 8 per kg in March, since then the prices have been on a slide with minor fluctuations.

"We want a subsidy from the state government to enable the farmers to come out of this situation. This is not for the first time, that a subsidy to potato farmers is required. In the past, the government had offered subsidy to potato growers to overcome such a situation," said Ganpatbhai Ladhaji, a member of Gujarat Batata Utpadak Khedut Sangathan Samiti, an association of potato farmers.

It may be noted here that barely a week back, potato farmers in Punjab had dumped hundreds of quintals of potatoes on the roads in different parts of the state, including Jalandhar city."With such protest, we have expressed our plight to the government and people at large. They should understand that it is better to throw our crops than to get a meagre amount like Rs 1 per kg," said Jambhai Patel, a potato farmer in Deesa.

Farmers estimate potato production in the range of 15-16 million bales this year almost the same as last year. However, in the previous year, the potato production in the region stood at about 13 million bales with average prices hovered at about Rs 7-8 per kg.


The Business Standard, 22 December, 2011, http://www.business-standard.com/india/news/potato-farmers-in-gujarat-demand-financial-package/459273/


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