Odisha Government Offers Farmer Subsidies of Rs 58,000 to Boost Potato Cultivation

The state government of Odisha is taking a significant step to promote potato cultivation under the area expansion program by providing substantial subsidies to local farmers. As part of this initiative, the government plans to offer a subsidy of Rs 58,000 per hectare, covering both seed costs and plant care expenses.

The Odisha Agriculture Department has set an ambitious target to increase the area dedicated to rabi potato cultivation from 5,000 hectares last year to 11,000 hectares, particularly in districts lacking functional coal storage facilities. Each district's assigned target is considered non-negotiable.

According to authoritative sources within the Agriculture Department, the estimated total cost of cultivating potatoes per hectare is approximately Rs 1.45 lakh. To support farmers, the government is offering a maximum allowable subsidy of Rs 58,000 per hectare, equivalent to 40% of the total cultivation costs.

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This subsidy will be provided in two phases. First, a seed subsidy of Rs 43,875 per hectare will be released to the seed supplier, and second, a plant care subsidy of Rs 14,125 will be transferred directly to the farmers through the Direct Benefit Transfer (DBT) mode. The plant care subsidy will be disbursed after the first earthing-up, typically done around 21 days after planting the seed potato when the plants are 15-25 cm high.

Under this scheme, farmers will only be required to cover 25% of the seed cost, with the government bearing the remaining 75% as a subsidy. Certified potato seed typically costs Rs 3,144 per quintal, and farmers will only need to pay Rs 786 per quintal at the subsidized rate. The subsidy is available for up to one hectare, and farmers will need to cover the full seed cost for cultivation on areas exceeding one hectare.

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The funds for these subsidies will be allocated from the state plan under the development scheme for potato vegetables and spices. The Odisha Agriculture Department has procured 1.65 lakh quintals of certified potato seeds through the Odisha State Seeds Corporation. Notably, the Horticulture Directorate has also successfully supplied certified potato seeds for the first time in the first week of November.

In a separate effort, the Directorate previously provided a record-breaking 64,000 quintals of certified potato seeds during the kharif season of 2023 to districts like Koraput, Rayagada, and Malkangiri, which have reported a bumper potato crop. However, these regions have experienced distress sales due to a lack of suitable storage facilities. The subsidies aim to address these challenges and stimulate potato cultivation in the state.

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