Kolkata potato prices stay high despite government export controls and intervention efforts

The state has undertaken regulatory measures to manage potato exports to adjacent states, aiming to curb the export-driven price surge. Agricultural marketing authorities link the price inflation to the cost markups by several intermediaries as potatoes are transported from cold storage to the retail market.

A report by the Times of India highlights consumer frustration and criticism regarding the disconnect between governmental policy and its implementation. Enhanced police monitoring at state borders commenced on November 28, particularly at the Duburdihi checkpoint near Kulti, Asansol, in West Burdwan, to restrict potato exports from West Bengal. Despite these actions, a police official conveyed to TOI that an immediate decline in potato prices within Bengal is not anticipated; therefore, efforts to stabilize the market include halting potato transportation at checkpoints.

On Thursday, 28 Nov, the wholesale price of potatoes at cold storage facilities decreased marginally to $0.31 per kg. The escalation in retail prices is attributed to the accumulation of costs by intermediaries. Patit Parban De, representing potato cold storage owners, informed TOI, "Currently, there are 600,000 tons of potatoes in 475 cold storages across Bengal, adequate to fulfill domestic needs until December." He acknowledged the governmental export controls but emphasized the necessity for more stringent oversight of retail pricing.

Market analysts and traders anticipate a potential reduction in prices by Saturday, attributed to improved in-state availability. Nevertheless, the ongoing distribution through various middlemen layers continues to burden consumers. Further, the TOI report disclosed that the area dedicated to potato cultivation is 42,000 hectares, with significant contributions from districts such as Hooghly, East Burdwan, Bankura, East, and West Midnapore. The monthly and annual potato consumption in Kolkata is estimated at 175,000 tons and 2.1 million tonnes, respectively.