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LATEST NEWS UPDATES | Punjab Govt. announces subsidy for potato growers

Punjab Govt. announces subsidy for potato growers

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published Published on Dec 11, 2011   modified Modified on Dec 11, 2011
-PTI

The Punjab Government on Sunday announced freight subsidy for transportation of potato crop to domestic as well as export markets.

Potato growers had on Saturday threatened to throw potatoes on the roads in Jalandhar on December 15 to protest the fall in the crop's price to as low as Rs.1 per kg and the “insensitive” attitude of the State government.

Announcing a reprieve to potato growers across the State, Punjab Chief Minister Parkash Singh Badal directed the Punjab Rural Development Board to immediately release a sum of Rs.2 crore from the Rural Development Fund to Markfed to implement the freight subsidy scheme for interstate movement and export of potato, an official release said.

The Chief Minister gave the nod to the proposal mooted by Markfed, which is the nodal agency for the export of potatoes.

Markfed had proposed to offer freight subsidy of 0.50 paise per kg for marketing of potatoes within the country and Rs.1.5 per kg for export, a senior Markfed official said.

However, farmers demanded the State government provide freight subsidy of Rs.1 per kg on marketing of old crops in domestic markets and Rs.2 per kg for export.

“The freight subsidy is proposed to be offered along the pattern of 2009 when the subsidy was offered due to low prices,” the Markfed official said.

In the year 2009, when potato rates plummeted, the Punjab Government had offered the same amount in freight subsidy. Due to the excess supply of the crop this year, farmers are fetching unexpectedly low rates of Rs.1 per kg for potato that was in cold storage, and Rs.2-3 per kg for early-sown crop. 

The Hindu, 12 December, 2011, http://www.thehindu.com/todays-paper/tp-national/article2707588.ece


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