The West Bengal government on Wednesday fixed the support price for potato at Rs 2.50 a kg in a bid to prevent distress sale by farmers amid record production, said Naren Chatterjee, chairman, West Bengal State Marketing Board. |
This is the first time the government has intervened in potato pricing. |
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Currently, market price of the commodity has touched a low of Rs 1.50 a kg in some parts of the state. |
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The state has also decided to procure around 100,000 tonnes of potato from farmers through various agencies like West Bengal State Co-operative Marketing Federation, and West Bengal State Consumers Co-operative Federation at support price. |
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However, a section of traders have expressed apprehension at the move to fix a support price. |
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"This looks like a stunt before the Panchayat polls. After all, buying only 100,000 tonnes when there is so much of excess production is not going to impact the market prices in any major way," a trader said. |
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The decision was taken at a meeting held between State Finance Minister Asim Dasupta and Agriculture Marketing Department Minister Murtaza Hussain on Wednesday. |
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The state agriculture marketing ministry had earlier directed cold storage owners to ensure that storage facilities are optimally used to store potato. |
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According to advanced estimates, potato output in West Bengal is seen at 7.5 million tonnes in 2007-08 (April-March), up from 6 million tonnes a year ago on the back of favourable weather conditions. |
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Potato futures prices have also fallen nearly 30 per cent over the last one month as most cold storages in Agra and Tarkeshwar are running close to 90 per cent occupancy, and potato arrivals are still expected in these markets. |
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