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UP Launches 3 New Schemes for Potato Farmers: Price Subsidy, Cold Storage Aid and Seed Discount

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Uttar Pradesh launches three potato farmer schemes offering price support, ₹100 cold storage aid per quintal and seed discounts up to ₹1,000, benefiting lakhs of growers.

Akansha Trivedi

By Akansha Trivedi

Aug 20, 2026 13:08 pm IST
9.15 k
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UP Launches 3 New Schemes for Potato Farmers: Price Subsidy, Cold Storage Aid and Seed Discount

Key Highlights

  • ₹1,000 crore Bhamashah Price Stabilization Fund created.

  • Price support available for up to 2 hectares.

  • ₹100 per quintal subsidy for cold storage.

  • Maximum cold storage assistance capped at ₹20,000.

  • Potato seed discount of up to ₹1,000 per quintal.

The Uttar Pradesh government has announced three new schemes for potato farmers for the financial year 2026-27. The initiatives aim to provide financial relief against falling potato prices, rising cold storage expenses and the high cost of quality seeds.

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Under the new measures, eligible farmers can receive support if potato prices fall, a subsidy of ₹100 per quintal for storing potatoes in private cold storage, and a discount of up to ₹1,000 per quintal on departmental basic potato seeds. The government expects around 15 lakh farmers to benefit from these initiatives.

To ensure transparent and smooth implementation, Dinesh Pratap Singh, Minister of State for Horticulture, Agricultural Marketing, Agricultural Foreign Trade and Agricultural Exports, recently launched the new online portal, potato-uphorticulture.in, at Udyan Bhawan in Lucknow.

₹1,000 Crore Price Stabilization Fund for Potato Farmers

A bumper potato crop can often lead to oversupply in the market, causing prices to fall sharply. In such situations, farmers may be forced to sell their produce at low prices, making it difficult to recover their production costs.

To address this issue, the Uttar Pradesh government has established the Bhamashah Price Stabilization Fund with a total fund size of ₹1,000 crore. At present, a token amount of ₹100 crore has been allocated for the scheme.

Under the Price Stabilization Scheme, a committee headed by the Agriculture Production Commissioner will determine the production cost of potatoes. Eligible farmers will receive a subsidy equal to 25% of the determined production cost or the difference between the production cost and selling price, whichever is lower.

The scheme is designed to provide support when potato prices decline significantly and help protect farmers from major losses caused by market fluctuations.

Benefit Available for Up to 2 Hectares

Under the Price Stabilization Scheme, each farmer can receive benefits for a maximum area of 2 hectares. The subsidy will be applicable to a maximum potato quantity of 240 quintals per hectare.

The Uttar Pradesh government estimates that around 12 to 14 lakh potato farmers could benefit from this scheme. The approved subsidy amount will be transferred directly into the bank accounts of eligible farmers through an Aadhaar-seeded DBT system.

Farmers must apply online to avail the benefit. Offline applications will not be accepted. Applicants will also have to submit a buyer-seller transaction form as part of the required process.

Potatoes covered under the scheme can be sold through a market, sub-market, cold storage complex or directly from the field. The implementation period has been divided into two phases:

  • January 1 to April 15

  • July 1 to October 31

₹100 Per Quintal Assistance for Potato Storage

The government has also introduced the Cold Storage Scheme to reduce the financial burden on farmers who store potatoes instead of selling them immediately after harvest.

Farmers often keep their produce in cold storage while waiting for better market prices, but storage charges can increase their overall costs. Uttar Pradesh currently has 2,363 private cold storages, where around 173.03 lakh metric tonnes of potatoes are stored.

Under the new scheme, eligible farmers will receive ₹100 per quintal as assistance for storing potatoes in private cold storage. The maximum benefit available to one farmer will be ₹20,000.

More than 15 lakh farmers are expected to benefit from this initiative. A token allocation of ₹100 crore has also been made for the scheme.

Up to ₹1,000 Per Quintal Discount on Potato Seeds

The third initiative is the Potato Seed Sale Rate Discount Scheme, which has been introduced to help farmers reduce their production costs and access quality planting material.

The Uttar Pradesh government has made a provision of ₹5 crore for this scheme. Farmers purchasing department-sourced basic potato seeds will receive a maximum discount of ₹1,000 per quintal.

The government estimates that more than 15,000 potato farmers will benefit. By lowering the cost of quality seeds, the scheme is expected to reduce potato cultivation expenses per hectare and support better crop production.

New Online Portal to Manage All Three Schemes

The government has launched potato-uphorticulture.in to simplify the implementation of all three schemes and make the process more transparent.

Farmers will have to apply online according to the eligibility conditions and procedures prescribed for each scheme. The digital system is expected to improve access to government assistance and streamline the application process.

For the Price Stabilization Scheme in particular, offline applications will not be accepted, making online registration mandatory for farmers seeking benefits.

Major Relief for Potato Farmers in Uttar Pradesh

With these three schemes, the Uttar Pradesh government has focused on three major financial challenges faced by potato farmers, falling market prices, cold storage expenses and costly quality seeds.

The Price Stabilization Scheme will provide support during sharp price declines, while the Cold Storage Scheme will help reduce storage costs. At the same time, the seed discount scheme will make departmental basic potato seeds more affordable.

For the 2026-27 financial year, these initiatives are expected to provide financial assistance to potato growers at different stages, from harvesting and selling their crop to storage and preparation for the next cultivation cycle. With an estimated 15 lakh farmers expected to benefit, the schemes could offer significant support to Uttar Pradesh's potato farming sector.

Also Read: Rajasthan Links Farmer Registry, Fertilizer Distribution and MSP Procurement to Krishi Stack

CMV360 Says

The three new schemes announced by the Uttar Pradesh government aim to protect potato farmers from falling prices, high storage costs and expensive seeds. With price support, ₹100 per quintal cold storage assistance and seed discounts of up to ₹1,000 per quintal, the initiatives are expected to benefit lakhs of farmers. The new online portal will also ensure a transparent and easier application process.

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