Helping farmers cut post-harvest loss, avoid distress sales

Indian government to give 50% subsidy for fruit & vegetable transports

The federal government has issued guidelines to give a 50% subsidy in a fixed timeframe for storing and transporting fruit and vegetables to prevent post-harvest losses and distress sale by farmers when prices fall.

The subsidy will be disbursed if the price in notified production clusters falls below the average of the preceding three years or if it falls more than 15% from last year’s price at the time of harvest. It will also be given if the price falls below the benchmark price for procurement, for procurement, for a specified period.

“Subsidy support for transport and storage of perishables shall go a long way in ensuring remunerative prices to farmers, reducing wastage and assuring seamless supply of perishables. The scheme guidelines are drafted in a manner that they are more broad based and easy to understand,” said food processing minister Harsimrat Kaur Badal. Claims will be settled digitally in a time-bound manner, she added.

The ministry will provide the 50% subsidy for “transportation of eligible crops from surplus production clusters to consumption centers or hiring of appropriate storage facilities for eligible crops for a maximum period of three months.” The maximum subsidy amount per applicant will be rupee one crore during the six months period.

According to, mango, banana, guava, kiwi, litchi, papaya, citrus, pineapple, pomegranate and jackfruit are the fruits which have been approved by the agriculture ministry. In vegetables, French beans, bitter gourd, brinjal, capsicum, carrot, cauliflower, green chillies, okra, onion, potato and tomato have been approved.

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