Spud shoring scheme being readied

With potato prices falling to almost Rs 3-4 per kg in major wholesale markets because of an expected bumper harvest, the central government is once again gearing up to intervene to prevent prices from crashing below cost of production. The cost of production of potatoes is Rs 3-4 a kg, almost the same as the current wholesale rate. The Centre implements a market intervention scheme on specific request from states willing to share the loss equally, while in the case of northeastern states, the ratio is 75:25. However, losses are restricted to 25 per cent of the procurement cost or actual loss, whichever is less.

“We might have to intervene in the markets if the states want, as potato prices are falling fast,” a senior agriculture ministry official said.