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04
January 2019
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Potato
(The Total Investment & Insurance Solutions)
Potato cultivation is set to gain acreage by
7-8 per cent in India, second largest producer in the world, as better
remuneration in the previous season has exhorted farmers to grow more tubers
this Rabi season. Prevailing low price of seed potato and price assistance
schemes launched by various states to check distress sale have also driven
farmers to increase tuber cultivation in the country. “Potato cultivation is
likely to increase by 6-8 per cent in Uttar Pradesh as farmers had earned
higher income in potato in 2018 than in the previous year,” president,
Federation of Cold Storage Association of India (FCSAI) Mahendra Swarup told.
He
said most farmers have earned more in 2018 than in the previous two seasons.
Higher potato cultivation is also attributed to rains in October that has
replenished the water bodies and groundwater level in Northern states, a senior
official of Uttar Pradesh Horticulture department said. Potato acreage has
increased in two major potato growing states of West Bengal and Uttar Pradesh
that produce around 55-60 per cent of potato output in India. The tuber sowing
season begins in October and extends till December in Rabi season. “Potato area
is up by more than 5 per cent compared to last year in West Bengal,” Patit
Paban De, member of West Bengal Cold Storage Association (WBCSA), said. The Total Investment & Insurance
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This year potato prices have remained steady
for most part of the year but witnessed slide in the month of November and
December. But the price fall as affected traders and cold store owners more
than the farmers. Also, the price support schemes for potato launched by states
to check distress sale has encouraged farmers to increase potato cultivation in
the country. This season Haryana has announced to include potato under
Bhawantar Bharpayee Scheme while Uttar Pradesh has bought potato at Rs 4.87 per
kilogram in the last season to check losses to farmers. Lately, Punjab
government has also announced to buy the crop for mid-day meal to check
distress sale. The Total Investment
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But traders who are facing losses in potato
trade see little succour in such schemes. Traders claim that loading cost (cost
at potato at the time of storing including transportation, packaging and
deterioration of stock) is much higher than the assistance offered by the
government. “ Moreover governments buy selective crop consisting high quality
specifications that curtail extent of compensation to farmers,” Swarup said.
“A higher retail price of potato in 2018
seemed to have suppressed the demand in domestic market and it has left surplus
buffer stock with cold storeowners,” trader based in Madhya Pradesh said.
Traders and cold store owners pay to farmers in advance for their stocks. It is
not possible to recover cost of transportation, bags, deterioration, rentals
and most of the loss fell on cold store owners. Rise in potato production has
caused gluts in recent years in India. It has hurt business interest of
stakeholders including traders, cold store owners and farmers in potato
cultivation. “Ironically potato growers are hoping that output remains average
as bumper crop will check prices in the ongoing potato season,” says Jang
Bahadur Singh Sangha, leading potato growers in India. A likely rise in potato
output is likely to supress the prices in coming season as traders are looking
to cover up their losses. “Traders and cold store owners will curtail extent of
advance payments against stocked potato to farmers in the current season,” a
cold store owner based in Punjab said.The
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