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Supply gap causes potato price increase in Kolkata

Zoom in font  Zoom out font Published: 2016-06-01  Views: 7
Core Tip: In Kolkata, India, a drop in potato production has caused the price of the commodity to increase; yet the farmers are not benefiting from this.
In Kolkata, India, a drop in potato production has caused the price of the commodity to increase; yet the farmers are not benefiting from this. A kilo of the Jyoti potato variety cost Rs 24 for consumers, but farmers are being paid only Rs 5-8, suggesting that it is the middlemen who are profiting. 
 
Last year, Bengal, the second biggest potato producer after Uttar Pradesh, saw a bumper harvest at 11 million tonnes. 
 
This year, the production has just touched 9 million tonnes. "But this plunge should not have made the potato costlier than Rs 18 per kg at Kolkata markets. It shows that the middlemen are having a greater slice of the profit," said Apurba Roy, an agricultural expert. "Apart from the demand-supply gap, which is burning a hole in your pocket, personal greed has also prompted systematic hoarding by powerful middlemen and that is hitting you hard," Roy added. With prices soaring steadily over the past few weeks and now stabilizing at Rs 24 and again threatening to soar, there are concerns over hoarding. 
 
(1 Indian Rupee=0.015 USD)
 
keywords: potato
 
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