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Cold storages in West Bengal will start unloading potatoes starting Friday with the State Government approving the industry’s long standing demand for a hike in rentals.
According to Patit Paban De, member of West Bengal Cold Storage Association, the State Government has approved a rental hike of Rs 19 a quintal on storage of potatoes.
The opening up of cold storages will help check rise in prices of the tuber in the State.
Backed by a steady demand from other States, potato prices inched up by almost Rs 150 a quintal in the last fortnight.
Wholesale price of the tuber (Jyoti variety) was ruling around Rs 900 this week, against Rs 750 during the second week of April.
“Usually around this time of the year, farmers have a reasonable quantity of potatoes left with them.
“However, this year there is hardly any stock left even while the production has been very good. If cold storages do not start unloading, then prices could rise further as the demand continues to be good,” De told Business Line .
Lower than expected
West Bengal Cold Storage Association had urged the State Government for a hike of Rs 36 on rentals in order to be able to make good for the rise in operation costs.
West Bengal and Tripura are the only two States in the country where potato cold storage rents are controlled by the State Governments.
Cold storages in West Bengal have been reeling under losses due to a 50 per cent rise in input costs in the last three years.
Electricity tariffs have increased by 50 per cent from Rs 30 about three years ago to Rs 45 now, while diesel prices have increased by 48 per cent from Rs 35 to Rs 52. Labour costs have also gone up during this period, thereby, exerting pressure on profitability, De said.
“There has been no hike for the last three years and now though the hike has come but it is way too less than what the industry had expected. It is difficult for the industry to sustain on this kind of rentals,” he said.
The last hike happened in January 2010 when rentals increased by Rs 14.
The hike took into account the rise in operational costs in 2009 over that in 2008.
Cold storages spend nearly Rs 150 for storing one quintal of potatoes during the storage season extending between mid-February to end of November.
However, till last season, the rental for storing potatoes was Rs 101.
Mamata Banerjee-led State Government had set up an expert committee to look into the issue.
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