Potato distress sales fail to bring down price at Kolkata markets
Times of India | 28 July 2025
Kolkata: Farmers across south Bengal are facing unprecedented distress as potato prices plummeted below production costs to as low as Rs 10 per kg, forcing them into distress sales, while retail prices in Kolkata remained largely unaffected at Rs 22-24. Despite the state's announcement of a minimum support price (MSP), the failure to implement it has plunged the potato economy — one of the pillars of Bengal's rural livelihood — into a deep crisis. Industry experts warn that the continued losses may drive farmers away from potato cultivation, triggering future supply disruptions and record-high prices.
The West Bengal Cold Storage Association (WBCSA) raised the alarm, highlighting growing gap between wholesale and retail potato prices and its devastating impact on farmers and cold storage industry. According to Ramesh Periwal, executive member of WBCSA, a record 70.9 lakh metric tonnes of potatoes are stored in cold storage units across Bengal. Typically, 60% of the state's potato production is consumed locally, while 40% is traded across states. But the ban on inter-state potato movement last season led to about 10 lakh metric tonnes of early-variety potatoes being stored, leaving cold storages overstocked.
The state govt declared an MSP of Rs 9 per kg to stabilise prices, prompting farmers to sell part of their produce and store the rest. "Around 75%-80% of the current stock belongs to farmers. At the start of the unloading season in May 2025, wholesale prices matched the govt's announced rate of Rs 15 but dropped sharply within two weeks to Rs 11-12 per kg for premium varieties (Singur wholesale market, Hooghly) and Rs 9-10 per kg for average quality (Burwan, Bankura, Midnapore and north Bengal cold storages). Farmers are now incurring losses of Rs 400-500 per quintal," said WBCSA vice president Subhajit Saha.
"There is serious apprehension that unless the situation improves, farmers will abandon potato cultivation, which will disrupt demand-supply dynamics and severely damage the rural economy," warned Sunil Kumar Rana, president of WBCSA. "We urge the govt to intervene with procurement at MSP, facilitate inter-state trade, and include potatoes in public welfare schemes such as mid-day meals.
"The state is considering steps to procure 15% of preserved stock at MSP, include potatoes in mid-day meals, promote inter-state and export trade, and offer transport subsidies to stabilise prices and boost consumption.