In a bid to arrest the slide in potato prices, the West Bengal government on Tuesday announced a minimum support price of ₹4.60 a kg, approximately 30 per cent more than the present market price.

The state will procure 28,000 tonnes a month directly from farmers for its mid-day meal schemes and anganwadi centres. Procurement is expected to start this week.

Price movement

The move comes as a bumper crop has prompted the southward movement of tuber prices here. With favourable climatic conditions and higher yield, potato production in Bengal is expected to touch 110 lakh tonnes this year.

Currently, potato price (of the ‘Jyoti’ variety) – after witnessing a prolonged period of dip since December last year – is fetching ₹3.30–3.60 a kg. At the cold storage end, the ‘Jyoti’ variety fetches around ₹4.20 a kg, trade sources said.

Almost a month back (mid-February this year), potato prices stood between ₹2.60 and ₹2.80 a kg at the farm-end; and ₹3.00 (approx) a kg at the cold storage end.

State intervention

The state government’s announcement will lead to an immediate inching up of prices by at least 20 paise a kg, the sources said.

“We have seen a bumper production of potato this year, as a result of which farmers have resorted to distress selling. In order to prevent that, we are offering a remunerative price of ₹4.60 a kg,” Chief Minister Mamata Banerjee said.

The state faced a similar situation last year also, with lower demand from neighbouring states and increased stock. The government had then procured the tuber at ₹5 a kg.

Transport subsidy

Meanwhile, the state government has decided to facilitate farmers in case they look at transporting potato to other states.

A subsidy of ₹0.50 a kg for railways transportation and of ₹1 per kg for exports through ships has also been announced.

Related Topics
comment COMMENT NOW