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Slow Demand Traps Lakhs of Tons of Potatoes in Farrukhabad Cold Storages.

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The potato farming heartland of Farrukhabad in Uttar Pradesh is grappling with crisis, as an economic slowdown and weak external demand have stalled the evacuation of the previous season’s potatoes from cold storage facilities. With an alarming almost 50% of the total stored potato volume still awaiting withdrawal, both farmers and traders are facing major concerns, turning what was hoped to be a bumper year into a crippling burden.

Farrukhabad, a major producer of the potatoes, boasts 109 cold storages with a cumulative capacity of approximately 10.4 lakh metric tons. This season, around 7.8 lakh metric tons were stored. However, according to records from the Horticulture Department, a staggering 4.60 lakh metric tons—representing more than 50% % of the stored stock—remains unused.

The root of the crisis lies in a devastating price disparity. Farmers and traders, who had purchased and stored the potatoes between February and March when prices were reasonably high (around ₹1000–₹1300 per quintal), are now in problems. The total cost, including initial purchase, cold storage rent, packaging, and freight, is estimated to be between ₹1400 and ₹1600 per quintal. Currently, however, the wholesale market is offering a meager ₹700 to ₹1200 per quintal—well below the break-even point.

“The slowdown in the market has made the storage cost a heavy burden,” one cold storage operator noted. “The evacuation rate has been sluggish from the beginning, and with no demand coming from outside the state, it hasn’t picked up pace.”

Several factors are contributing to this stagnant demand. Potato exporters point to severe external challenges, including heavy flooding and rains, which have sharply curtailed demand from key export destinations like Nepal. Domestically, poor procurement orders from major consumption hubs such as Assam and Kolkata have also kept prices depressed, leading to a standstill in the railway rack loading necessary for inter-state transport.

Adding to the complexity, Farrukhabad’s farmers are simultaneously preparing for the sowing of the next (early) potato crop, necessitating the evacuation of some existing stock to clear space. However, the prospect of selling their previous harvest at a crippling loss has dampened their enthusiasm, further complicating the disposal of the remaining over 50% inventory.

In an ironic twist, while farmers are reeling from wholesale rates that put them in the red, the average consumer continues to pay a high price. Retail markets are reporting potato sales at approximately ₹20 per kilogram, showing little relief for the general public despite the surplus stock and wholesale slump.

Hoping to mitigate the growing crisis and give the market more time to absorb the stock, the district administration is contemplating relief measures. The District Horticulture Officer has indicated that the final deadline for potato withdrawal, which was previously set for October 31, is likely to be extended by the government to November 30. This extension is seen as a necessary step to ensure the complete evacuation of the existing produce and offer a glimmer of hope for a price recovery, essential for avoiding widespread financial distress in the region’s agricultural economy.