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Kolkata, Jan. 9 YES Bank, in a special report on “Potatoes: Potential & Opportunities in West Bengal”, released at the inaugural session of the first such four-day India International Potato Expo 2008” here today, has cited the scope for large investment and business opportunities for development of potato industry in the State on a PPP (public-private partnership) basis.

It is felt that together with the various traditional investment opportunities that exist, there was also scope to develop niche markets. Calling for a planned and integrated approach, the main constraint is said to be lack of adequate agri infrastructure which needs augmentation and modernisation.

Stating that price discovery in the past few years was becoming more transparent with the emergence of commodity exchanges, the bank is of the view that futures trading in Potato also facilitates purchase or sale of the commodity for future delivery where contracts are based on future exchange on the basis of standard quality, quantity, delivery time, locations and price.

The idea behind the exchanges, according to the report, was to enable price transparency, offload the price uncertainties and give farmer a better price realisation.

A quick intervention of the State Government is sought for this purpose.

It is suggested that given the small land holding pattern in West Bengal, it was important for the local farmer associations to use these commodity exchanges on behalf of individual farmers. The associations should ideally offload the price risk on the exchange by selling the contracts of potato futures.

It is felt that expiry of these contracts should coincide with the harvesting period of the potato contracts. (Recently, the Multi Commodity Exchange of India Ltd has launched futures trading in potato contract at Tarakeshwar in West Bengal.)

Citing the various challenges, it is pointed out that the uncertainty over the price of potato post-harvest or before sowing of the crop begins was a major concern, affecting potato growers of West Bengal, by and large. Highlighting the big potential for export of value-added potato products to countries like the US, the UK and the Netherlands, the report said there was increasing demand for raw material like potato flakes, powder as well as potato starch in these countries, the bank has urged the State Government to facilitate setting up of potato processing units at SEZs, food parks and agri export zones.

More Stories on : Horticulture/Fruits & Vegetables | West Bengal

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