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Potato test for government -Jitendra

-Down to Earth

The crash in potato price is triggering a wave of suicides in several states. Will the NDA government's ambitious Price Stabilisation Fund help farmers?

Soon after the National Democratic Alliance government announced its ambitious Price Stabilisation Fund to contain price volatility in the domestic market, the scheme faces its acid test. A bumper crop has led to a free fall in potato prices in several states this year. Between March 1 and April 4, at least 17 potato farmers in West Bengal, a major potato-producing state, committed suicide. Similar cases are also being reported from Punjab, Haryana and Uttar Pradesh. Will the Price Stabilisation Fund (PSF) be able to stabilise the market ?

With a corpus of Rs 500 crore, PSF has two objectives: one, arresting crashing prices of potato and onion through procurement during bumper harvests; and two, maintaining buffer stocks of the commodities to meet demand during the lean period.

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