Potato prices firm on fresh loading in cold storages

After a phase of free-fall, potato prices have increased by Rs 100 a quintal in the past two days on government intervention. Prices have gone up to about Rs 450 a quintal from Rs 320-340 two days ago, owing to fresh loading in cold storages, according to traders.

So far, nearly 120 million bags (of 50 kg each) or 6.2 million tonnes have been loaded. Last year, 105 million bags, or 5.5 tonnes, were loaded. This year, there has been 12-13 per cent capacity creation in cold storages.

However, nearly 20 million bags are in the open for loading in cold storages. There are 480 cold storage facilities in West Bengal.

"The government intervened to ensure that the closed cold storage facilities could be opened. There were issues with electricity connection, which was recently restored. This added to the space for potato storage this year," said Dilip Pratihar, advisor, West Bengal Progressive Potato Traders' Association.

Despite a slight price correction, potato farmers are incurring losses. Against the cost of production at Rs 500 a quintal (including storage cost), farmers could get only Rs 350-360 a quintal from field-level sale till about a week ago.

In view of the falling prices, recently, the West Bengal government decided to provide railway freight subsidy of Rs 50 a quintal for potato shipment from south Bengal, and Rs 100 a quintal from that in north Bengal. This apart, the state would also extend a transport subsidy of Rs 100 a quintal for potatoes sent via water transport to neighbouring countries.