West Bengal’s potato market is currently facing a significant challenge, with a bumper production and relatively low demand causing a drastic drop in prices. Potato prices have reportedly been halved in West Bengal over the last year, a direct consequence of this imbalance.
The state has witnessed a substantial increase in potato production, reaching 115 lac tonnes in the 2024-25 period. This represents a considerable rise from the 100 lac tonnes produced in 2023-24. This surge in output is attributed to a bumper production coupled with an increase in the area under cultivation. The production figure of 115 lac tonnes for the current year is particularly noteworthy as it is the highest since 2012-13. This information was highlighted by Patit Paban De, a senior member of the West Bengal Cold Storage Association. He noted that with the muted demand, wholesale prices have inevitably fallen.
The impact on prices has been severe. According to Lalu Mukherjee, the secretary of the Paschim Banga Pragatisil Alu Byab-sayee Samiti, the wholesale prices for the Jyoti variety of potato are currently hovering around ₹12-14 a kilogram. This is a sharp decline from the ₹24-25 per kilogram farmers were fetching just a year ago. Mukherjee stated that in the current situation, farmers are incurring losses. Providing specific figures, he mentioned that farmers were getting ₹10 per kilogram for their produce on the field during February-March. The price for loading potatoes into cold storage during that period was ₹10-11 a kilogram. However, farmers are now receiving significantly less, getting only ₹7-8 per kilogram.
Compounding the problem of high supply is the issue of lacklustre demand. While the state generally requires around 4-5.5 lakh tonnes of potatoes per month during the January to March period, and consumption typically rises to over 7 lakh tonnes from June to September, the current demand is described as muted. Interestingly, even when the prices of other vegetables shot up, the demand for potatoes did not increase as expected. Mukherjee explained that people generally tend to substitute other vegetables when potato prices are high.
The inter-state trade dynamics have also played a role in the current market scenario. Last year, there was a restriction on selling potatoes to other states. This measure was implemented due to the excess potato stock within West Bengal. The restriction had a knock-on effect, compelling farmers to sell their older stocks first, which in turn delayed the sale of the new crop.
Currently, the situation regarding inter-state sales is different. The government is reportedly not restricting the sale of potatoes to other states. However, despite the removal of restrictions, the demand from other states is also low at present. Mukherjee cited the example of Odisha, which he stated was largely dependent on West Bengal for its potato supply. However, because West Bengal could not supply Odisha last year, Uttar Pradesh took advantage of the situation and supplied potatoes to that state. This suggests a potential shift in supply chains established during last year’s restrictions, further impacting West Bengal’s ability to offload its surplus production now.
West Bengal’s potato sector is grappling with the dual challenge of a record bumper harvest and subdued demand, both domestically and from other states. This has led to a dramatic fall in prices, leaving farmers facing considerable losses on their produce. The current scenario underscores the volatility in agricultural markets where high production, usually a positive event, can negatively impact producers when not met with commensurate demand and efficient market mechanisms.
