Russia threatens to restrict potato import from India

If exports fall, farmers' plight will worsen as they are selling in distress

At a time when farmers are dumping potato at prices which are half the average cost of production, Russia’s threat to impose temporary restrictions on import might increase supply in the domestic market, aggravating farmers’ plight. Russia’s move comes after finding ‘brown rot agent’ in Indian potatoes.

Data compiled by Agmarket, which comes under the agriculture ministry, showed the price at Rs 2.5 a kg in Ambala (Haryana), Rs 3.1 a kg in Agra and Rs 2.75 a kg in Siliguri (West Bengal). In all these markets, farmers’ realisation stands at sharply lower than the average cost of production of Rs 4 a kg.

In some markets, however, potato is quoted at higher than the cost of production. It also depends on the proximity of the wholesale markets from producing centres. In Azadpur (Delhi) mandi, potato is quoted at Rs 4.20 a kg. Potato has moved in closed range over the past three months despite reports of crop damage due to unseasonal rainfalls and hailstorms during harvesting season.

“Prices are subdued due to a bumper crop. Over 80 per cent of the crop got harvested before the unseasonal rain in the first week of March. The remaining 20 per cent was sown late. Hence, the delay in harvesting the standing crop is not expected to affect overall production this year,” said R P Gupta, director, National Horticulture Research & Development Foundation.

The National Horticulture Board (NHB) in its first advance estimates forecast output at 42.2 million tonnes in 2014-15 against 41.6 mt the previous year.

To avoid distress sale and encourage exports, the government removed the minimum export price last month. However, potato from Pakistan works out to be cheaper than India in foreign markets, including West Asia.

“Exporters from Pakistan are selling at $175 a tonne, against $225 a tonne quoted by Indian suppliers. Also, the quality is better than that of India. Hence, we have failed to exploit our potential,” said Ajit Shah, president, Horticulture Exports Association.

Shipment from India is estimated to have surged to 250,781 tonnes between April and December 2014 compared to 118,158 tonnes in the corresponding period last year. In terms of value, too, potato exports recorded four-fold jump at Rs 595.65 crore from Rs 140.72 crore.

But, exporters received a major jolt on April 3, when Russian sanitary and phytosanitary authority Rosselkhoznadzor threatened to impose temporary restrictions on import of Indian potatoes. In a communique, Rosselkhoznadzor informed Indian authorities including Agricultural & Processed Food Products Export Development Authority (Apeda) and the Ministry of Agriculture, "There were nine cases of in 2011 and 23 cases in 2014 when 'brown rot agent' was detected in plant products imported from India. The repeated cases of quarantine object detection are indicative of the fact that measures taken by the Indian Ministry of Agriculture to ensure phytosanitary safety of plant products exported to Russia are not effective enough. We reserve the right to impose temporary restrictions on import of Indian potatoes."

While the exact quantity of potato exports to Russia was not immediately known, the restrictions, if any, would have significant impact.

"'Brown rot agent' could be detected in just two-three potatoes a tonne. The issue could be addressed at seed stage for which we are working with Central Potato Research Institute which will take some time," said Santosh Sarangi, chairman, Apeda.