Gopal Sadhu Khan - a potato farmer of Abhirampur village in West Bengal’s Hughli district – is ruing his decision to hold on to his produce at the beginning of this season.

Like him, thousands of farmers in West Bengal, without any price risk hedging mechanism, are distressed.

Nearly 20 per cent of the 59 lakh tonnes of potatoes in the 425 odd cold storages in the State have already made their way into the market in the past one month as despondency grew.

Khan produced nearly 600 quintals of potatoes on around 15 bigha (4.95 acre) this season.

He sold around half of it at the beginning of the season at Rs 500-550 a quintal, flaking out a profit of Rs 100-150.

The rest of his produce was placed in the cold storages with the hope of a little better price.

“I spent close to Rs 400. I could fetch some surplus over the cost initially. But now the prices have dropped to Rs 400,” Khan told Business Line .

Moreover, a farmer has to incur additional expenses to the tune of Rs 75-80 if he wants to store the crop; cost of transportation, sorting and grading and cold storage rental charges, all put together.

According to Patit Paban De, member of West Bengal Cold Storage Association, the prices were subdued at the beginning of the season owing to overproduction.

There has been a 12 per cent rise in potato production in the State to nearly 98 lakh tonnes this year.

Prices

Over the last fortnight, wholesale price of the tuber (Jyoti variety) in West Bengal dipped by over Rs 100 to Rs 670-700.

“The share of potatoes stored by farmers this year is higher and accounts for nearly 50 per cent of the total quantity kept in cold storages, as compared to 30-35 per cent during previous year. Of the 20 per cent stock released so far, a majority belonged to the traders. Any further fall in prices will, therefore, hurt the farmers very badly,” De said.

State Intervention

Alarmed by the situation, the West Bengal Government has ‘facilitated’ sale of potatoes to Sri Lanka. Attempts are understood to be on to sale potatoes to Assam and Odisha.

“We have already sent 500 tonnes of potatoes to Sri Lanka through Tamil Nadu. If required, we will facilitate transportation of more quantities to prevent a price crash,” Pradip Kumar Mazumdar, Agriculture Advisor to the Chief Minister, told Business Line .

West Bengal consumes around 50-55 lakh tonnes potatoes while nearly 40 per cent find its way into other States.

“Prices will continue to remain at these levels unless the sentiments improve. This might be possible only if the State Government intervenes,” De said.

shobha.roy@thehindu.co.in

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