Potato seed prices in West Bengal are high like never before.
While the state government has been able to reign in high potato prices, the seed prices have increased abysmally on account of demand supply mismatch in Punjab.
In the last one month potato seed prices have more than doubled from nearly Rs 17 per kg to Rs 50 per kg.
Of the total seed requirement of 800,000 tonne in West Bengal, about 50 per cent are from Punjab. This year, with most of the locally grown potato seeds being destroyed by floods, the requirement of seeds from Punjab has gone up to nearly 70 per cent.
“This year, prices of potato seeds are extremely high. Moreover, the seeds which are imported from Punjab are of very inferior quality, mostly under-sized tubers,” said Pranab Chatterjee, professor at Bidhan Chandra Krishi Viswavidyalaya.
In addition, higher cost of fertilisers and labourers has added to the overall cost of potato cultivation. Thus cultivation of potato over one bigha (about 0.4 hecatre) this year could cost around Rs 18,500, which yields about four tonne potatoes. In general, the cost of production of four tonne potato is close to Rs 12,000. This year, the cost of labour has gone up from Rs 4,000 to Rs 6,000, that of fertiliser from about Rs 1,500 to Rs 2,500 and that of seeds from nearly Rs 5,000 to Rs 10,000 (for producing four tonne potato).
Thus, if the potato prices crashes after the arrival of new crops in late December, most of the farmers would have to sell their produce at a loss.
“If at the farm level, potato prices fall below Rs 7-8 per kg, it will be a loss for the farmer,” said Chatterjee.
Recently, the state government has decided provide potato seeds at Rs 18 per kg, to 30,000 farmers to solve the crisis.
Meanwhile, potato prices in retail market continue to hover between Rs 15-17 per kg. Recently, West Bengal Chief Minister Mamata Banerjee removed partial ban on transport of potatoes to Orissa. The state government has decided that one lakh tonne potatoes would be exported to Orissa from West Midnapore district.
West Bengal produces nearly 100 lakh tonne potato every year. Of this, only 55 lakh tonne is domestically consumed. The rest has to be exported.
Cost of 4 tonne potato production (Rs)
2012-13 | 2013-14 | |
Fertilizer | 375 | 625 |
Labourers | 1,000 | 1,500 |
Seeds | 1,250 | 2,500 |
Total | 2,625 | 4,625 |
Source: Informal estimates |