The State Government has launched a potato buffer stock scheme this year in order to provide potato and onion to people at reasonable prices during short-supply period. Under this scheme, the Government would procure and stock potato during harvesting seasons to meet State’s off-season need.
To make the scheme more sustainable, the Government has recently sought Rs 100 crore from the Centre’s Rs 500-crore Price Stabilsation Fund Scheme (PSFS) to make a corpus fund. The PSFS is meant to support market interventions for onion, potato and pulses.
As Odisha doesn’t produce required quantity of potato, a commonly consumable tuber, to meet its demand for a whole year, the Potato Buffer Stock Scheme is expected to help common people a lot during August-December short-supply period. The scheme is felt necessary in view of lack of storage facilities for onion and potato in the State.
The PSFS fund, if availed, would be used as corpus fund/revolving fund for the market intervention. Market intervention requires prior assessment of the requirements, anticipated supply to meet domestic demand, duration of availability of domestic produces and procurement and storage of the aforesaid commodities well in advance.
As per PSFS guidelines, needy States are required to purchase potato, onion and pulses directly from farmers, to maintain buffer stock, which would otherwise discourage hoardings, and to supply the items to consumers at reasonable prices at the time of need. The prices of potato and onion are highly volatile in nature.
As per guidelines, a one-time interest free advance would be released in favour of the State on its first proposal. The State Government may be asked to contribute an equal amount in 50:50 shares with the Centre to this fund.
An official said the State may be asked to contribute 50 per cent to the proposed Rs 100-crore Corpus Fund. “The State Government has already made a budgetary allocation of Rs 50 crore for the 2015-16 fiscal,” the official informed.
The State-level revolving fund account would be settled with the Centre in March 2017 by the Price Stabilisation Fund Management Committee.
The profit or loss on the price stabilisation operation would have to be shared in the same ratio at the time of settlement of fund. The PSFS would be implemented during 2015-16 and 2016-17. If required, the fund may be allowed to roll on to future years. The Food Supplies and Consumer Welfare (FS&CW) Department has been designated as the nodal department for the aforesaid purposes. The Odisha State Civil Supply Corporation (OSCSC) ltd would operate the revolving fund.