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Bengal’s Potato Paradox: Record Harvest Brings Financial Distress.

by Indian Potato Team
08.03.2025
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West Bengal Potato Farmers
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West Bengal, potato farmers find themselves caught in a perplexing situation where abundance has become a source of hardship. The state is expected to witness a record-breaking harvest of 1.4 crore tonnes of potatoes, yet farmers are grappling with mounting debts and diminishing returns, highlighting the complex challenges within India’s agricultural sector.

The scale of production in West Bengal, India’s second-largest potato producer, has reached new heights with cultivation expanding to 5.13 lakh hectares. Major growing districts, including Hooghly, Purba and Paschim Bardhaman, Paschim Medinipur, and Bankura, have contributed to this substantial yield. However, this remarkable achievement has paradoxically become a source of concern for the farming community.

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West Bengal Potato Farmers

At the heart of this crisis lies the stark disparity between production costs and market prices. Farmers are currently receiving merely Rs 550 per quintal for the Pukhraj variety and Rs 900-1000 for the Jyoti variety. These prices fall dramatically short of covering their production expenses, which have risen significantly. The cost of potato seeds has surged to Rs 2800-3000 per 50kg bag, up from Rs 2200 in the previous year. Similarly, DAP fertilizer costs have increased to Rs 1800-2200 per 50kg from Rs 1570.

The total cultivation cost per bigha (0.25 hectare) now ranges between Rs 30,000-33,000, while the yields remain relatively constant at 40-45 quintals per bigha for Pukhraj variety and 35-40 quintals for Jyoti variety. This economic imbalance has pushed many farmers into a cycle of debt, forcing them to rely on high-interest loans from microfinance companies charging up to 18% interest rates.

West Bengal Potato Farmers

The state government has attempted to address this crisis through a procurement scheme targeting 11 lakh tonnes at an MSP of Rs 900 per quintal. However, the implementation faces several challenges. Farmers are limited to selling only 35 quintals each, and the documentation requirements – including land ownership papers, Krishak Bandhu card, Kisan credit card, and Bangla Shasya Bima insurance card – create additional hurdles for many, especially sharecroppers.

Storage infrastructure presents another significant challenge. While West Bengal boasts 507 cold storage facilities with a combined capacity of 88 lakh tonnes, the current production far exceeds this capacity. The annual consumption within the state stands at approximately 60 lakh tonnes, leaving a substantial surplus that requires proper storage or immediate market absorption. Cold storage rental costs, at Rs 1.6 lakh per 100 quintals, add another financial burden on farmers.

The market dynamics are further complicated by the presence of traders who control significant storage capacity and influence price movements. With over one lakh potato traders dependent on the trade, the power dynamics often work against the farmers’ interests. The oversupply situation has led to price depression, while limited export opportunities restrict potential alternatives for surplus disposal.

West Bengal Potato Farmers

This crisis underscores the need for systemic changes in West Bengal’s potato farming sector. The paradox of plenty – where record production leads to financial hardship rather than prosperity – calls for multiple interventions. These include developing more robust price support mechanisms, improving access to institutional credit at reasonable interest rates, expanding storage infrastructure, and creating favorable export policies.

The situation also highlights the vulnerability of sharecroppers who, despite contributing significantly to production, often lack access to formal credit and government support schemes. Their exclusion from the formal agricultural support system pushes them further into debt traps, making them the most affected victims of this agricultural paradox.

As West Bengal continues to grapple with this crisis, it becomes evident that agricultural success cannot be measured by production figures alone. The state needs a comprehensive approach that balances production with market demand, storage capacity, and most importantly, the financial well-being of its farming community. Until these systemic issues are addressed, the potato farmers of West Bengal will continue to face the bitter irony where their success in production becomes a source of financial distress rather than prosperity.

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