)
The West Bengal government’s order to traders to sell potatoes at half the market price will now have a national impact, as the latter went on strike from Tuesday.
This means a disruption in the supply chain for the eastern states, which is likely to stir demand for potatoes from Uttar Pradesh and Punjab, which traditionally serve the northern and western states.
Overall potato prices are already high on account of a nearly 20 per cent drop in production. Traders say production in UP is down by 10-20 per cent and in Bengal by 20 per cent. The two states account for nearly 60 per cent of the country's output. In Bihar, third largest potato producing state after UP and West Bengal, production is down by about 10 per cent.
Every year, Bengal sends nearly six million tonnes of potatoes or nearly 60 per cent of its production to Bihar, Jharkhand, Odisha, Andhra Pradesh and Assam. In these states, the retail prices of potato is Rs 20-30 a kg, against Rs 12-14 a kg last year. According to Ajit Shah, president, Horticulture Exporters Association, prices in Maharashtra are Rs 22-23 a kg, against Rs 12-13 kg last year. In Delhi, the price is Rs 20-24 a kg.
In the first week of August, the government here sealed the border as domestic wholesale prices of potato went up from Rs 1,400 a quintal in the beginning of June to about Rs 1,600 a qtl by the end of July. A production shortage, along with an unprecedented spurt in export to Pakistan during the Ramzan month, had pushed up prices by 10-20 per cent. With potatoes grown in UP and Punjab being exported, the demand from Bengal was high, leading to a price rise, according to Dilip Pratihar, advisor, West Bengal Merchants Association.
However, in the second week of August, the Bengal government partially relaxed the ban, allowing 5,000 tonnes to be transported to Odisha and 500 tonnes to Jharkhand on a daily basis during August 17-23. Then, on August 25, the state government came up with new norms, allowing supply of 700 tonnes daily to other states, provided the suppliers ensured 300 tonnes to it at Rs 12 a kg, to be sold to ration shops.According Sukumar Samanta of Pragatishil Aloo Byabsayee Samiti, with the cost for traders at Rs 17 a kg, it would be not be possible for them to sell at this price.
