Scheme to share loss suffered by potato, onion growers

NEW DELHI: Amid reports that potato and onion farmers were dumping their produce due to fall in prices, Agriculture Minister Sharad Pawar today assured Parliament that a scheme is in place to share the loss incurred by the growers.

The Agriculture Ministry implements a Market Intervention Scheme (MIS), after it receives proposals from state government on the need for procurement of agricultural and horticultural crops, Pawar said in a reply to a query on reports of dumping of onions and potatoes by farmers in some states due to low prices.

Under the MIS scheme, losses are shared between the Central and the state government concerned on a 50:50 basis.

Noting that Karnataka and Uttar Pradesh governments had requested the Centre to intervene, Pawar said that during the current year, these two states have proposed "procurement of 54,000 MT of onion at the rate of Rs 6,000 per MT and 1,00,000 MT of potato at Rs 3,280 per MT" which was agreed to.

Pawar said NAFED is the central agency responsible for MIS operations, including for potato and onions.