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Ban on exports hurts potato growers

At the time of sowing, potato prices had increased from Rs 1,500 to Rs 1,600 a quintal, resulting in farmers increasing crop acreage

Rajeev Bhaskar Jalandhar
Prices of potato plummeted to a mere Rs 400 a quintal from Rs 600 in the last 15 days, dealing a major jolt to potato growers in the harvesting season.

At the time of sowing, potato prices had increased from Rs 1,500 to Rs 1,600 a quintal, resulting in farmers increasing crop acreage. However, the prices took a downward turn of late. As per the information, the drop in prices has been caused due to the ban on export of the vegetable in order to control inflation. Earlier, the government's export ban had not included Pakistan but the recent decision has included our neighbour as well, increasing the pressure on prices. Pakistan is the largest market for Indian potatoes during the first half of this financial year (April-October).
 
Farmers who were already facing losses to the tune of Rs 20,000 per acre due to a fall in prices from Rs 1,600 to Rs 600 a quintal, would now have to bear losses of Rs 30,000 per acre.

The situation is exacerbated by the fact that farmers were forced to buy potato seeds at high rates, as at that time the price of potato was at a peak.

Kuldeep Singh, a farmer, said he had paid Rs 1,700 for a 50-kg bag of potato seeds during the sowing season. He said including expenses such as seeds, irrigation, labour, pesticides and fuel, a farmer would have spent nothing less than Rs 80,000 per acre this season.

"The prices have now dropped to just Rs 400 a quintal. If a farmer has harvested 100 quintals of potato from one acre, he will get only Rs 45,000 in the market and will face a minimum loss of Rs 30,000 per acre," said Dhot, who has cultivated potatoes on 400 acres.

Resham Singh Chandi, vice-president, Potato Growers Association, Kapurthala, blamed the government for the situation and said if the government had not put a ban on the export of potatoes the farmers would have got good prices of their hard work.

"If the apathetic government still fails to give attention to the issue, the price of the crop might drop further in coming days and the farmers would not be able to bear the losses then," he said.

Meanwhile, supervisor of vegetable market, Sukhdev Singh said the fall in prices was due to the increased harvest. "It is obvious that the rates will be go down when the production of the crop increases and demand decreases," he said.

Following the arrival of the fresh potato crop last month, prices of potatoes have fallen considerably. With the slide in prices, the Jalandhar Potato Growers Association (JPGA) has urged the state government to intervene. Around 80,000 hectares are under the potato cultivation in the state. Around 25 per cent of the total area in the state is under the crop in Jalandhar district.

Jagat Parkash Singh, a representative of JPGA, said, "We will hold a meeting to discuss the future course of action. The government should extend freight subsidy for the export of potatoes to the other states like they did in 2004 when potato prices were at the all time low."

"This is exploitation of farmers and consumers. The government must come up with a plan to bail them out." He said export should be allowed to neighbouring countries like Pakistan.

"The Centre intervened when potato prices were at a peak. They must intervene now when the prices are sliding. The farmers will be able to meet the input cost if the crop is sold at Rs 800 per quintal," he claimed.

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First Published: Feb 06 2015 | 10:36 PM IST

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