Kolkata prices for potatoes remain at record levels despite export restrictions and interventions

In Kolkata price, the retail costs of potatoes remain at an average of around $0.41 per kilogram, in spite of the directives of the Chief Minister Mamata Banerjee to cut costs to below $0.36 per kg in order to reduce the pressure on consumers. The state has taken regulations to control exports of potatoes to neighboring states in order to reduce the spike in prices caused by exports. Agriculture marketing authorities connect the increase in price to price markups made by various intermediaries when potatoes are moved from storage facilities until the retail market.

The Times of India highlights consumer anger and criticism of the gap between government policy and its execution. Increased police surveillance at the state border began on the 28th of November, particularly in the Duburdihi checkpoint in Kulti, Asansol, in West Burdwan, to restrict exports of potato coming from West Bengal. However an official from the police told to TOI that a sudden drop in prices for potatoes in Bengal cannot be anticipated. consequently attempts to stabilise the market are stopping the transportation of potatoes through checkpoints.

On Thursday, wholesale prices of potatoes stored in Cold storage facilities dropped by a small amount by $0.31 to $0.31 per kilogram. The rise in retail prices can be attributed to the increase of expenses through intermediaries. Patit Parban De who represents the owners of cold storages for potatoes said to TOI, “Currently, there is a huge amount of potato stored in 475 cold stores across Bengal sufficient to meet demands of the country through December.” He acknowledged the export control, however he emphasized the need for greater surveillance of prices for retail.

Analysts and traders are anticipating an expected decrease in prices on Saturday due to the increased availability in states. However, the current distribution of the potato through different middlemen layers remains a major burden on the consumer. In addition the TOI report revealed that the land devoted to cultivation of potato totals 42,000 hectares with important contributions from various districts like Hooghly, East Burdwan, Bankura, East, and West Midnapore. The average monthly and annual intake of potato for Kolkata is estimated to be 175,000 tonnes and 2.1 million tonnes, respectively.

Source: Kolkata Now