 "West Bengal traders cry foul over ban on potato exports")
As the West Bengal government goes on a war footing to control potato prices at Rs 13 a kg, a large section of traders in Paschim Medinipur, Barddhaman and Bankura is angry, as they are unable to meet their trade commitments.
The three districts together cater to the Odisha, Andhra Pradesh, Jharkhand and Bihar markets. Most of the potato trade runs on credit, which means, payment is made only at a later date.
A section of traders used to smuggle out potatoes to other states. On Tuesday, the state government sternly implemented the ban on the export of the commodity to other states. A special police force, deployed at the borders, seized a number of trucks carrying potatoes, and sent these back to Kolkata, according to sources.
Farmers usually sell their produce at cold storages to their owners or investors, who trade on potato bonds. The investors use these receipts to trade in potato.
These receipts change multiple hands, often sold at a premium. Thus, potato bonds sold at Rs 120-200 per 50 kg in September were till recently selling at Rs 400-500 for 50 kg.
“When government’s officials ask us to sell the stock, it is like an order,” said a cold storage owner.
West Bengal produces nearly 10 million tonnes of potato a year. Of this, only 5.5 million tonnes is consumed in the state. At present, close to 1.4 million tonnes of potato and potato seeds are lying in cold storages. In the next two months the total consumption of the both would be not more than 12 lakh tonne, leaving a surplus stock of 2 lakh tonne.
Meanwhile, sowing for new potato crop has already started in West Bengal. Though delayed by more than a week, the arrival of new crop by January is expected to ease prices substantially.
The three districts together cater to the Odisha, Andhra Pradesh, Jharkhand and Bihar markets. Most of the potato trade runs on credit, which means, payment is made only at a later date.
A section of traders used to smuggle out potatoes to other states. On Tuesday, the state government sternly implemented the ban on the export of the commodity to other states. A special police force, deployed at the borders, seized a number of trucks carrying potatoes, and sent these back to Kolkata, according to sources.
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Fearing a crackdown, vendors are emptying their stocks at Rs 17-20 a kg. The government has been procuring the commodity directly from cold storages at Rs 11 a kg. The entire procurement process has turned into a forcefully executed exercise.
Farmers usually sell their produce at cold storages to their owners or investors, who trade on potato bonds. The investors use these receipts to trade in potato.
These receipts change multiple hands, often sold at a premium. Thus, potato bonds sold at Rs 120-200 per 50 kg in September were till recently selling at Rs 400-500 for 50 kg.
“When government’s officials ask us to sell the stock, it is like an order,” said a cold storage owner.
West Bengal produces nearly 10 million tonnes of potato a year. Of this, only 5.5 million tonnes is consumed in the state. At present, close to 1.4 million tonnes of potato and potato seeds are lying in cold storages. In the next two months the total consumption of the both would be not more than 12 lakh tonne, leaving a surplus stock of 2 lakh tonne.
Meanwhile, sowing for new potato crop has already started in West Bengal. Though delayed by more than a week, the arrival of new crop by January is expected to ease prices substantially.