West Bengal plans potato shipment subsidy as 3-million-tonne surplus drives down prices

Surplus leaves West Bengal growers with few outlets

West Bengal is preparing a subsidy to move surplus potatoes to other Indian states after weak outbound shipments left growers facing sharply reduced prices. Prabhat Khabar reported that the state has an excess of 3 million metric tonnes and that potatoes are selling for 100-150 taka per bag. The publication said West Bengal’s crop could not be sent to other states this year, limiting market access and increasing losses for farmers.

During a visit to Hooghly, Panchayat Minister Dilip Ghosh said arrangements were being made to support shipments of the additional production. He said the proposal had been sent to the finance department three times and that the budget had included a subsidy for collecting potatoes from farmers. The intended recipients are cold-storage owners and traders that dispatch potatoes to other states, with funding expected through the agricultural marketing department.

Ghosh also attributed the current market disruption to restrictions on potato shipments imposed by the previous chief minister over recent years. Prabhat Khabar described the planned measure as an export subsidy, although the minister’s stated target was movement to other Indian states rather than international exports. No subsidy rate, total budget or implementation date was given in the source material.

Cold-store withdrawals slow in Uttar Pradesh

Pressure is also visible in Etah district in Uttar Pradesh. Live Hindustan reported that the district’s 23 cold stores held 200,000 metric tonnes of potatoes by April. About 35%, or roughly 70,000 tonnes, is intended for seed in the next season, while the remaining 65% was stored for sale.

Only 13% of the potatoes had been withdrawn from Etah’s cold stores by 26 July, compared with 30% by July last year. Storage facilities must be emptied by December under government rules, leaving 87% of stocks still inside with only four to five months remaining. Retired horticulture inspector Ravendra Mishra warned that if demand and wholesale prices did not improve in August and September, growers could be forced to abandon potatoes in storage or sell them at extremely low prices by December.

Wholesale prices in Etah were reported at 800-1,000 rupees per quintal for Chipsona and sugar-free potatoes. Hybrid potatoes were bringing only 600-800 rupees per quintal. Cold-storage rent alone was about 150 rupees for each 50-kilogram package, before the cost of bags, labour and transport, leaving farmers unable to recover their full expenses.

Vegetable supply adds to demand pressure

Etah District Horticulture Officer Sughar Singh linked the slow withdrawals and low prices to abundant supplies of green vegetables. Timely low rainfall increased vegetable production and availability locally and in surrounding areas, according to his account. With green vegetables plentiful and inexpensive, potato consumption declined and more stocks remained in storage.

The two regional cases show the same commercial problem at different scales: large inventories are meeting insufficient near-term demand. West Bengal is trying to widen domestic distribution through financial support, while Etah growers face a narrowing period in which to clear stocks before mandatory emptying of cold stores.

For producers, traders and storage operators, the effectiveness of West Bengal’s measure will depend on the subsidy’s size, timing and ability to cover the cost of moving potatoes into markets outside the state. In Etah, the immediate indicators will be withdrawals during August and September and whether wholesale prices rise enough to cover storage, handling and transport. Neither publication provided forecasts for production, consumption or prices beyond the conditions described.