Business Standard

UP potato producers hit by problem of plenty

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BS Reporter Lucknow

The potato growers of Uttar Pradesh were rejoicing in March this year, following a bumper harvest. But, the same lot is now in despair, as their produce is fetching them just Rs 225 to Rs 300 per quintal in all major markets such as Kannauj, Farrukhabad, Sisra Ganj, Agra and Kanpur.

Against the average production of 10-10.5 million tonnes per annum, potato production surpassed all records with 14 million tonnes this year. Consumption within the state is close to 6 million tonnes and the remaining has to be exported either to other states or foreign markets.

Despite the fall in prices in the mandis, traders, whole-sellers and middlemen are raking in huge profits as the retail price of potato remains at Rs 10 a kg or Rs 1,000 a quintal.

 

There has been no official explanantion of who is benefitting from the huge margin of at least Rs 700 a quintal.

In March-April, farmers were worried about the ‘houseful’ signboards at cold storages and staged protests to stock their produce. Ironically, on Tuesday, the cold-storage owners are a worried lot as the farmers are in no mood to take out their produce from the storages.

“Glut in the market has ruined both the farmers and cold-storage owners’’, said Raghavendra Singh, who owns a chain of cold stores in Sirsa Ganj and other parts of Mainpuri district.

“The cost to farmers, including the storage charges, is more than Rs 350 a quintal, against the mandi price of Rs 225 to Rs 300 a quintal. So the farmers are not interested in taking out their produce from the storages and as per the legal agreement, we are bound to store the potato till October 30.”

“Usually, 40 per cent of the stored potato is sold by August every year. This year, the farmers have hardly removed 10 per cent of it. After October 30, with permission from the district horticulture officer, we will auction the stored potato in the open market,” said Raghavendra.

Both farmers and cold-storage owners blame the UP State Agriculture Produce Marketing Board for its failure to promote the export of potato.

The office of the UP potato export facilitation society, set up at Vashi in Mumbai at a cost of Rs 25 lakh, has been vacant for the last two years. UP accounts for about 50 per cent of the potato produced in India. UP is the 12th largest potato producer at the global level, as per production parameters.

“The lack of enterprise among the farmers and traders was the key reason for the poor exports. We have done everything possible from our end to promote exports, like providing grants for brand promotion and transport subsidy. Yet, this year, export was a mere 400 tonnes to Nepal and 100 tonnes to Mumbai,” said Rajesh Kumar Singh, director of the agriculture produce marketing board.

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First Published: Aug 27 2008 | 12:00 AM IST

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