With potato prices crashing on account of bumper production, the state government's move to fix a minimum support price for potato is unlikely to bring cheer to farmers in West Bengal.
At a recent farmers' meet, West Bengal Chief Minister Mamata Banerjee blamed demonitisation, along with bumper production, for the price crash.
On Tuesday, West Bengal announced a minimum support price of Rs 460 per quintal, or Rs 4.60 per kg for procurement of potato to salvage farmers from price crash. The government will procure about 28000 tonnes of potatoes over the next few months for mid-day meals in schools. However, against a production of about 11 million tonnes this year, the government's procurement would account for less than 3 per cent of total production. Last year, West Bengal produced about 9 million tonnes of potatoes.
Nevertheless, potato prices recovered marginally after the government announcement. The prices went up from Rs 320-380 per quintal last week to about Rs 380-430 per quintal in open market. Yet, the prices are below the cost of production, which comes at around Rs 450-500 per quintal.
Against total production of about 11 million tonnes this year, local consumption is not more than 5.5 million tonnes. The state generally sends about 4.5 million tonnes of the commodity to neighbouring states. The state is left with excess production of 1 million tonnes, leading to a price crash.
Apart from MSP, the government will also provide transport subsidy to facilitate exports. The subsidy will be to the tune of 50 paise a kg for railways transportation and Re 1 per kg for shipments outside India. Notably, While a handful of rich farmers in the districts of Paschim Medinipur, Barddhaman and Hooghly can pay for transportation and the rent for cold storage, small farmers in West Bengal sell their produce to middlemen.
With a contribution of 25 per cent in India's potato output, West Bengal is the second largest producer of the vegetable after Uttar Pradesh.
Inadequate marketing channels, manipulation by middlemen and the absence of support prices make potato cultivation in the state inherently risky.
West Bengal potato production
| Year | Production (In Million Tonnes) |
| 2010-11 | 13.3 |
| 2011-12 | 9.69 |
| 2012-13 | 11.5 |
| 2013-14 | 12 |
| 2014-15 | 11 |
| 2015-16 | 9 |
| 2016-17 | 11 |