West Bengal’s Potato Sector: Navigating Production, Costs, and Market Realities
The potato sector in West Bengal is currently experiencing a significant upswing in production as the 2024-25 season progresses. Following Uttar Pradesh, the state remains a key player in national potato output. This year has seen an expansion in the area under cultivation, resulting in a substantial increase in yield, estimated to have reached 145 lakh tonnes, a considerable rise from the previous year’s 100 lakh tonnes. This surge in production occurs against a backdrop of established cold storage infrastructure within the state, with a capacity of approximately 80 lakh tonnes. For those involved in the potato industry, a key consideration is how these production and storage figures interact with the economic realities faced by growers.
Examining the financial aspects of potato cultivation reveals a tightening margin for producers. Data from the Directorate of Economics and Statistics in 2021-22 indicated that the cost of essential farming inputs and materials alone amounted to around ₹545 per quintal. When factoring in the value of family labour and land rental costs, the total production expenditure rose to approximately ₹921 per quintal. Given the inflationary trends observed since then, it is highly likely that the current cost of producing a quintal of potatoes now exceeds ₹1000. This escalating cost base presents a significant challenge for the sustainability and profitability of potato farming in the region.
The dynamics of the potato market in West Bengal are also heavily influenced by the perishable nature of the crop and the role of intermediaries. Many farmers, lacking on-farm storage facilities, opt to sell their produce immediately after harvest, often directly in the fields. These harvested potatoes are then acquired by traders and commission agents who subsequently store them in cold storage facilities during the peak harvest period of March and April. These stored potatoes are then gradually released into the market over the subsequent months, typically until November, a period when freshly harvested potatoes are no longer available from the main crop. This supply chain mechanism often leads to price fluctuations, with market prices tending to rise during the later part of the year when farmers have depleted their stocks. There are also observations suggesting that market operators may, at times, contribute to price increases through the creation of artificial supply shortages.
The preceding year provides a relevant case study in understanding these market dynamics. Despite a reduction in overall potato yields due to rainfall, the retail prices of the popular Jyoti variety experienced a sharp increase, reaching approximately ₹30 per kilogram in April-May 2024. While this period of higher prices may have offered some respite to farmers who had produce to sell, there are indications that traders and intermediaries were the primary beneficiaries of these elevated prices, potentially through market manipulation. Evidence cited includes the significant quantity of potatoes (around 1.3 lakh bags) from the previous year’s harvest that remained in cold storage well into the current season. This carry-over stock suggests that claims of losses by traders may not fully reflect the profits accrued earlier in the season.
This year, reports from districts such as Hooghly and Purba Bardhaman indicate that farmers have been compelled to sell their potatoes at prices ranging from ₹5.5 to ₹7 per kilogram. This price pressure early in the season underscores the vulnerability of farmers in the face of high production volumes and the existing market structure. The complexities of post-harvest handling, including the costs associated with bagging, loading, transporting, and unloading potatoes at cold storage facilities, further impact the net returns for growers.
For the potato industry in West Bengal to achieve greater stability and equitable returns for producers, a deeper understanding of these production costs, market mechanisms, and the influence of storage and trading practices is crucial. Examining strategies that can mitigate early-season price dips and ensure a fairer distribution of profits throughout the supply chain would be beneficial for the long-term health of the sector.
