Govt wants potato, tomato farmers to get better deal
BY Tania Ameer27 Aug 2015 5:25 AM IST
Tania Ameer27 Aug 2015 5:25 AM IST
When onion prices are soaring steeply, the retail prices of tomato and potato are facing a glut, immensely harming the farmer’s income.
This crisis comes at a time when onion prices are sky-rocketing juxtaposed with the agricultural retail market facing an acute problem of huge losses, incurred due to very low retail pricing of primarily tomato and potato, followed by maize, sugarcane and cotton.
Sources in the government said that as per a survey and assessment conducted by the Agriculture ministry, farmers cultivating potato and tomato are incurring huge losses as their cost of production is not being met in the retail market. This is because the price at which they are being sold is lower than the cost of production.
“The cost of production of potato is 6 rupees per kg while the price they are being sold at around Rs 5.50 per kg in Agra.
Meanwhile, the cost of cultivation of tomato is Rs 4 per kg and is being sold in the market for Rs 5 in Hyderabad. Similarly sugarcane, cotton and maize are likely to be sold below the Minimum Support Prices (MSP),” said the source. <g data-gr-id="28">Also</g> farmers growing potato and tomato across Uttar Pradesh, Punjab and Rajasthan have only been able to get between Rs 4-6 per kg, while in Bangalore they are getting only Rs 9 per kg.
The source added, “This needs to be a clear focus area for the Government - the low retail prices which have adversely affected farmers income directly - rather than the focus on the temporary rise of onion.” The prices of these commodities have been the cheapest for the past few years, and it is because of the major price deficit in production and retail costs being not met.
“Despite the unwarranted focus on onions, the real issue of concern for the government to take immediate action on lies with the issue of losses farmers are facing due to tomato and potato prices,” stressed the source.
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