After distress sales West Bengal State Government helps potato farmers with a solid minimum support price

The state cabinet on Tuesday approved a minimum support price (MSP) of INR 900 (USD 10.8)for a quintal of potato after reports that farmers were forced to go for distress sale of the crop following bumper production this year.

Mamata Banerjee:

"The cabinet on Tuesday has decided to announce a minimum support price for potato, which is INR 900 (USD 10.8) for a quintal. This will help the farmers as they would not be forced to go for distress sale. The state government earlier reserved 30 per cent space in the cold stores across for the small and marginal farmers to enable them to store their produce and sell the potatoes in the market a few months later when their price is better."

But it was found that the majority of the small and marginal farmers were not finding it easy to store their produce as they needed money immediately. This is the reason why the state government decided to buy potatoes directly from the farmers at MSP. Although the chief minister did not mention the quantum of potatoes the state would buy, sources in the agriculture marketing department said it would be fixed based on the demand from the farmers and the space available in cold stores.

The government has already reserved 30 per cent of the total storage space of 80 lakh tonnes. Now, it is yet to be ascertained whether the government would be able to buy 24 lakh tonnes of potato from the farmers as it also involves a handsome amount. Farmers in the potato-producing districts like Hooghly, East Burdwan, West Midnapore and Birbhum have been forced to sell their produce at INR 5.50 or 6 (USD 0.066–0.072) a kg at a time when production cost was around INR 6.50 (USD 0.078) a kg, with input cost including seeds and fertilisers going up significantly.

Mamata Banerjee:

"In a situation like this, MSP of INR 9 (USD 0.10) a kg would definitely help farmers... This could be a masterstroke by the ruling establishment (Trinamool) considering next year’s Assembly polls."

Nearly 15 lakh potato farmers spread across the south Bengal districts hold the key to electoral success, particularly in districts like Hooghly and East Burdwan. 

Mamata Banerjee:

"The government had announced MSP and bought nearly 16 lakh tonnes of potato ahead of 2021 Assembly polls. This had worked in favour of the ruling establishment as it bagged majority of the seats in these two districts in 2021 even though the BJP had wrested Burdwan (East) and Hooghly Lok Sabha constituencies in 2019."

The move will also help common people as the government will have enough potato stock through which it can keep the price reasonable even when its market price shoots up.

Mamata Banerjee:

"Last year, the price of potato went up to USD 30 (USD 0.36) a kg in the market. The government could not do much except blame traders for not releasing the produce as required in the market. If the government can store about 20 lakh tonnes, it can release potatoes in the market whenever required to control prices."

Mamata also said that the state government has already procured some potatoes from the farmers in parts of Hooghly where fields were inundated after the DVC released water.

Mamata Banerjee:

"We will sell these potatoes through Sufal Bangla. We will also ensure that farmers, whose produce was affected due to (the recent) untimely rain, get compensation as their crops were insured. The farmers would get a compensation worth INR 321 (USD 38.5)."