Amid falling potato prices and rising cold storage costs, 1,199 farmers in Prayagraj district have received financial assistance totalling ₹52.68 lakh under a cold storage fee relief scheme. The amount has been directly credited to their bank accounts through direct benefit transfer (DBT), officials said.
The scheme provides a subsidy of ₹100 per quintal on potatoes stored in cold storages, subject to a maximum limit of 200 quintals per farmer. This translates into assistance of up to ₹20,000 per farmer.
Deputy director (horticulture), Prayagraj division, Kaushal Kumar Neeraj said 4,135 applications were received from potato growers in Prayagraj district, of which 1,199 have been approved so far. Farmers can avail the benefit until November 30. Across the Prayagraj division, 8,665 applications have been received and 4,078 approved. Of these, 3,673 farmers have received a total of ₹261.74 lakh directly in their bank accounts, he added.
The relief comes amid a decline in potato prices following disruptions in exports to Gulf countries, including the UAE and Oman, which are key markets for Uttar Pradesh’s Chipsona and Kufri varieties. Disruptions in shipping routes and a steep rise in freight costs reportedly delayed shipments and led to the cancellation of export orders. As a result, stocks originally meant for overseas markets were diverted to domestic mandis and cold storages, adding to the pressure on prices.
The resulting increase in local supply put further pressure on prices, leaving several growers struggling to recover even their production costs. Higher cold storage charges added to their burden as farmers were forced to hold stocks for longer, officials said.
{{/usCountry}}The resulting increase in local supply put further pressure on prices, leaving several growers struggling to recover even their production costs. Higher cold storage charges added to their burden as farmers were forced to hold stocks for longer, officials said.
{{/usCountry}}Potato cultivation covers 45,225 hectares across the four districts of Prayagraj division, with an estimated annual production of 15.259 lakh metric tonnes. Prayagraj accounts for the largest area at 20,845 hectares, followed by Fatehpur (10,308 hectares), Kaushambi (8,506 hectares) and Pratapgarh (6,315 hectares).
For potato growers, the storage subsidy offers some relief, but the larger challenge of uncertain market prices remains. Kishan Patel, a farmer from Andawa, said raw potatoes could not be left in the open for long as they risked rotting, making cold storage the only viable option. However, keeping produce in storage for extended periods adds to rental expenses and reduces farmers’ returns. The financial assistance has offered some respite, he added.