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Potato price crashes in Bengal; MSP move fails to cheer farmers

Mamata Banerjee blamed demonetisation, along with bumper production, for the price crash

Namrata Acharya  |  Kolkata 

Representational image. Courtesy: Reuters
Representational image. Photo: Reuters

With prices crashing on account of a bumper production, the West government’s move to fix a minimum support price (MSP) for the crop is unlikely to bring much cheer to in the state.

At a recent farmers’ meet, chief minister blamed demonetisation, along with the bumper production, for the price crash. 

On Tuesday, the state government announced the of Rs 460 a quintal, or Rs 4.60 a kg, for procurement of to salvage reeling from the price crash. 

The government will procure about 28,000 tonnes of over the next few months for mid-day meals in schools. However, against a of about 11 million tonnes this year, the government’s procurement would account for less than three per cent of total Last year, West produced about nine million tonnes of potatoes.

Nevertheless, prices recovered marginally after the government’s 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 Rs 450-500 per quintal.  

chart
Against the 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 a surplus of one  million tonnes, leading to a price crash.

Apart from fixing the MSP, the government will provide transport to facilitate exports. The will be to the tune of  50 paise a kg for railways transportation and Rs 1 a kg for shipments outside India. 

While a handful of rich in the districts of Paschim Medinipur, Barddhaman and Hooghly can pay for transportation and the rent for cold storage, small in West sell their produce to middlemen.

With a contribution of 25 per cent in India’s output, West is the second largest producer of the vegetable after Uttar Pradesh.

Inadequate marketing channels, manipulation by middlemen and the absence of support prices make cultivation in the state inherently risky.

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Potato price crashes in Bengal; MSP move fails to cheer farmers

Mamata Banerjee blamed demonetisation, along with bumper production, for the price crash

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 demonitization, 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 ...
With prices crashing on account of a bumper production, the West government’s move to fix a minimum support price (MSP) for the crop is unlikely to bring much cheer to in the state.

At a recent farmers’ meet, chief minister blamed demonetisation, along with the bumper production, for the price crash. 

On Tuesday, the state government announced the of Rs 460 a quintal, or Rs 4.60 a kg, for procurement of to salvage reeling from the price crash. 

The government will procure about 28,000 tonnes of over the next few months for mid-day meals in schools. However, against a of about 11 million tonnes this year, the government’s procurement would account for less than three per cent of total Last year, West produced about nine million tonnes of potatoes.

Nevertheless, prices recovered marginally after the government’s 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 Rs 450-500 per quintal.  

chart
Against the 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 a surplus of one  million tonnes, leading to a price crash.

Apart from fixing the MSP, the government will provide transport to facilitate exports. The will be to the tune of  50 paise a kg for railways transportation and Rs 1 a kg for shipments outside India. 

While a handful of rich in the districts of Paschim Medinipur, Barddhaman and Hooghly can pay for transportation and the rent for cold storage, small in West sell their produce to middlemen.

With a contribution of 25 per cent in India’s output, West is the second largest producer of the vegetable after Uttar Pradesh.

Inadequate marketing channels, manipulation by middlemen and the absence of support prices make cultivation in the state inherently risky.

image
Business Standard
177 22

Potato price crashes in Bengal; MSP move fails to cheer farmers

Mamata Banerjee blamed demonetisation, along with bumper production, for the price crash

With prices crashing on account of a bumper production, the West government’s move to fix a minimum support price (MSP) for the crop is unlikely to bring much cheer to in the state.

At a recent farmers’ meet, chief minister blamed demonetisation, along with the bumper production, for the price crash. 

On Tuesday, the state government announced the of Rs 460 a quintal, or Rs 4.60 a kg, for procurement of to salvage reeling from the price crash. 

The government will procure about 28,000 tonnes of over the next few months for mid-day meals in schools. However, against a of about 11 million tonnes this year, the government’s procurement would account for less than three per cent of total Last year, West produced about nine million tonnes of potatoes.

Nevertheless, prices recovered marginally after the government’s 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 Rs 450-500 per quintal.  

chart
Against the 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 a surplus of one  million tonnes, leading to a price crash.

Apart from fixing the MSP, the government will provide transport to facilitate exports. The will be to the tune of  50 paise a kg for railways transportation and Rs 1 a kg for shipments outside India. 

While a handful of rich in the districts of Paschim Medinipur, Barddhaman and Hooghly can pay for transportation and the rent for cold storage, small in West sell their produce to middlemen.

With a contribution of 25 per cent in India’s output, West is the second largest producer of the vegetable after Uttar Pradesh.

Inadequate marketing channels, manipulation by middlemen and the absence of support prices make cultivation in the state inherently risky.

image
Business Standard
177 22