Potatoes to be stored for free in government bid to stabilise prices

KOLKATA/HOOGHLY: The Bengal government has ordered cold storage owners across the state to store potatoes free of charge for the month of December, which is likely to preempt the sudden abnormal spike in prices early next year.

Cold storages across the state empty themselves by end-November to do routine maintenance work for the next year. So, a huge amount of potatoes reach the market — much more than the demand — and have to be sold off at distress-price levels. In December 2016, the retail prices dropped to a ridiculous Rs 2.50 per kg.

Farmers, who incur huge losses, then strike back in February-March, controlling the amount being released to the market. This inadequate supply always leads to a price surge. Potatoes were sold at retail prices of up to Rs 30 a kg in March 2017.

The government’s move this year, say officials, is likely to stabilise retail prices.

‘Extension in storage facility to maintain price balance’

The minister for agricultural marketing, Tapan Dasgupta, told TOI: “Potato prices rise in January-February and to control the surge, we have decided to extend the storage facility by another month to maintain a price balance.”

Though the state production of 8.5 million tonnes this year is higher than the annual requirement of 6.5 million tonnes, poor supply management keeps prices high at the beginning of the year. “In the last three years, we have produced a huge quantity of potatoes, but we noticed that before the new produce hits the market in February, there is a shortage of supply. For the last two years, we have been trying to develop an effective demandsupply management system so that the price remains stable. This year, we hope to keep the price under control,” Dasgupta said.

Asked about this, agriculture minister Ashis Banerjee said: “We still have 11.5 lakh metric tonnes of potato in the cold stores and that is enough for three months. If we can manage the supply effectively people will not face any problem”. Asked about the maintenance of the cold stores, Banerjee said: “They will have enough time.”

The state government still has a spot of bother — the huge difference between the retail and wholesale prices. When the Jyoti variety of potato is sold at a wholesale price of Rs 7 per kg, it hits the market at Rs 16 to Rs 18 per kg.

“It is true that we are getting good prices but the middleman are pushing up retail price. There are no checks and balances. This has created a gap between the wholesale and retail prices,” Tapan Samanta, a farmer who has been cultivating potatoes for the last 40 years, said. When asked about it, Dasgupta said: “We will control retail prices also but before that we need to ensure that farmers get their due and the supply line is fine.”