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regular-article-logo Thursday, 19 December 2024

Factors behind potato price rise in Bengal

We spoke to government officials, traders and cold storage owners to assess the network of reasons behind the situation

Pranesh Sarkar Calcutta Published 10.11.20, 03:59 AM
File picture of a potato market in Calcutta

File picture of a potato market in Calcutta

The potato, a kitchen essential in Bengal that retailed at Rs 28 a kilo even a month ago, is now selling for Rs 40 in most markets of Calcutta amid murmurs that the price would keep climbing northwards.

The issue took a political turn after the BJP accused the Trinamul-led state government of failure to control the situation, while Trinamul blamed the Centre’s decision to curb the state’s authority on enacting the essential commodities Act to prevent inter-state trade of agriculture produce, and thus curb the spiralling prices.

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The Telegraph spoke to government officials, potato traders and cold storage owners to assess the network of reasons behind the situation.

High demand

Besides domestic demand, Bengal’s potato is in high demand in neighbouring states. The early variety from Punjab, which usually arrives in markets by early November, is yet to reach this year. Over 1 lakh tonne of Bengal’s potato is going to states like Andhra Pradesh, Odisha, Jharkhand, Bihar, Chattisgarh and Assam every month.

Demand for potatoes went up in Bengal from 5 lakh tonnes a month to about 6 lakh tonnes when vegetable prices shot up after Cyclone Amphan. “We are bringing out 7 lakh tonnes from cold storage owners instead of 6 lakh tonnes in other years. Even that’s not enough,” said a member of West Bengal Potato Traders’ Association. “Until fresh produce from Punjab arrives, the price won’t come down. The market could be stable by November-end,” said a trader.

Lack of state control

Senior state government officials said that during supply snags earlier, the state government could restrict potato trade to other states by enacting essential commodities Act. But this year it could not do so because the Centre curbed the state’s authority by removing potato from the list of essential commodities via the Essential Commodities (Amendment) Act, 2020.

“The state’s authority was curbed on June 5 when the Centre had promulgated an ordinance. As a result, we cannot take steps even if people of the state are suffering,” said Pradip Majumdar, agriculture adviser to the chief minister.

A senior government official said the immediate effect of the farm bills led to prices shooting up for potato and onion. “But farmers for whom the bills were introduced did not benefit. Some traders enjoyed the benefit and common people suffered,” he said.

Storage challenges

This year, Bengal produced around 90 lakh tonnes, less than usual. Fewer potatoes reached cold storages with the nationwide lockdown coming into effect from March 24. “Cold storages could not work properly because of labour shortage...they could stock 57 lakh tonnes of potato this year compared to 64 lakh tonnes in 2019 and 70 lakh tonnes in 2018,” said a cold storage owner.

Sources said if stock is less, traders are not in a hurry to release extra stock in the market. In the last few years, extra supply made traders hurry and clear stocks. This year, there is no extra supply.

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