Prayagraj : The Yogi govt’s intervention has brought significant relief to potato farmers affected by sharp price fluctuations in markets.
In Prayagraj district alone, as many as 1,199 farmers have received financial assistance under the cold storage charges reimbursement scheme, with Rs 52.64 lakh disbursed within a month. The scheme aims to benefit 15,000 potato growers in Prayagraj district. However, the state govt extended support of Rs 100 per quintal to eligible farmers to cushion losses. Kaushal Kumar Neeraj, deputy director (horticulture for the Prayagraj division), said that under this scheme, farmers were granted a subsidy of ₹100 per quintal for potatoes kept in cold storage. In Prayagraj district, 1,199 potato farmers have received financial assistance through this initiative so far. A total of 4,135 farmers from Prayagraj district applied for the relief, and of these, 1,199 applications were approved, and a sum of ₹52.64 lakh was transferred directly into their bank accounts via Direct Benefit Transfer (DBT). Across Prayagraj division, a total of 8,665 applications were received from potato farmers, with 4,078 being approved. So far, a total of ₹261.74 lakh has been transferred directly into the bank accounts of 3,673 farmers across Prayagraj division, including Prayagraj, Fatehpur, Kaushambi and Pratapgarh.
Farmers pointed out that they faced a major crisis due to price instability, driven by a sharp decline in potato prices. Ironically, potato farmers had been grappling with severe price volatility in stored potato stocks, triggered in part by disruptions linked to the Gulf conflict. However, state govt has stepped forward to assist them, launching an initiative that has provided crucial financial support.
Under a govt relief scheme, farmers were granted a subsidy of ₹100 per quintal on the storage costs of potatoes kept in cold storage. Each farmer could avail of this subsidy for up to 200 quintals of potatoes, providing direct financial assistance of up to ₹20,000. In Prayagraj, potatoes are grown across approximately 20,845 hectares, with a yield of around 8,000 metric tonnes this year.
The fact was that potato varieties like ‘Chipsona’ and ‘Kufri’ from Uttar Pradesh are exported to Gulf nations, including the UAE and Oman. However, tensions in the Gulf region disrupted maritime routes, leading many exporters to halt their container shipments. A significant portion of the potatoes intended for the Gulf market ended up remaining in local wholesale markets (mandis) and cold storage facilities. The cessation of exports, combined with a sudden surge in supply within the domestic market, exerted downward pressure on potato prices—often leaving farmers with returns that barely covered their production costs. The closure of export channels placed additional strain on cold storage facilities, forcing farmers and traders to keep their potato stocks in storage for extended periods. This not only increased storage rental and holding costs but also created a situation where old-season stock risked being dumped in the markets ahead of the new season. This relief was provided through the govt’s ‘Bhamashah Bhav Sthirta Kosh’ (Price Stabilization Fund). Despite this bumper harvest, a crisis regarding potato storage has compounded the difficulties faced by farmers. Ram Pal Patel, a potato farmer from Sahson, explains that raw potatoes cannot be kept in the open for long, as they are prone to rotting. Storing them in cold storage is the only viable option, which also helps farmers secure a better price for their produce.