Amidst dwindling prices of onion and potato on higher output than last year, the Gujarat government, on Tuesday, announced financial assistance in terms of freight and subsidy for exports, price difference, and storage subsidy for sale within the State.
A price difference of ₹2 per kg (or ₹200 per quintal) for onion crop (red onion variety) with a ceiling of 250 quintals will be provided per farmer. The State will spend ₹70 crore on this assistance. For potato growers, cold storage assistance of ₹1 per kg or ₹100 per quintal with up to 300 quintals will be provided to each farmer. The State has provisioned ₹200 crore under this scheme, applicable till March 31, 2023.
Additionally, in terms of transport assistance or freight subsidy for onion and potato growers, the State has offered subsidies of ₹750 per tonne for road transport for sale outside Gujarat, while for rail transport, it is ₹1,150 per tonne or 100 per cent of the total transport cost, whichever is less.
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Also in order to encourage exports outside India, the State has announced a 25 per cent subsidy in freight cost for potato and onion with a limit of ₹10 lakh per farmer. Allocation of ₹20 crore each is made for potato and onion schemes.
Further, those potato growers, selling within Gujarat, a price difference of ₹1 per kg or ₹100 per quintal will be provided for up to 300 quintals per farmer. A provision of ₹20 crore is made for this as well.
State Agriculture Minister Raghavji Patel announced these relief measures in the State Assembly on Tuesday while he also gave out the current scenario on onion crop.
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The average modal price for February 2023 stood at ₹671 per quintal, which is lower due to the higher stocks following the higher crop. It is estimated that the rabi onion crop will be around 7 lakh tonnes with an area of 0.8 lakh hectares, the Minister informed with an overall output projection of 19.28 lakh tonnes for the year.
As per the State projections, Gujarat’s average potato acreage is around 1.25 lakh hectares and the average output at around 38.42 lakh tonnes, which has increased this year to 1.31 lakh hectares of area and the projected output of 40.26 lakh tonnes - about two lakh tonnes more than the average. Higher production estimates pulled down the prices in the markets, with modal price quoting at ₹544 per quintal.
Also read: Potato production likely to be 5 per cent higher as acreage rises
“The Government had received representations from farmers about losses in market prices due to the higher crop. It was feared that the prices may further decline during the coming season. Hence, as the pre-emptive measure, the Government has decided to provide financial assistance to these farmers,” said Patel.