Simultaneously, the state government announced it would sell potatoes at Rs. 26 per kg, a move ostensibly aimed at stabilizing prices. Despite the Cold Storage Association's readiness to sell potatoes at the same rate, discontent brewed among potato traders. Within a day, they called for a strike to protest the government's ban on inter-state potato transportation, arguing it would disrupt their supply chains. They also contended that the potatoes meant for export differed from those consumed within West Bengal.

In response to the strike, the government swiftly engaged local self-help groups to procure potatoes directly from farmers. This manoeuvre circumvented the traders, ensuring a steady supply of potatoes to Kolkata's markets within 48 hours. Notably, the government sourced potatoes from the Hooghly region, which had seen a bumper crop despite an overall decline in West Bengal's potato production this year (2023-24).

By cutting out traders and collaborating with farmers and local groups, the government effectively streamlined the distribution of potatoes in Kolkata. This approach not only addressed immediate supply concerns but also reshaped the dynamics of potato distribution, sidelining both the Cold Storage Association and the traders' association in the process.

The West Bengal government's decision to bypass cold storage owners and traders in favor of direct engagement with farmers, marks a significant shift in its approach to stabilizing potato prices in the state. This move is particularly noteworthy given parallels with Bangladesh, which has grappled with its own potato crisis exacerbated by supply chain issues and price manipulation.

Bangladesh, historically a potato surplus nation, faced shortages last year that led to soaring prices and unprecedented imports from India. An official investigation in Bangladesh revealed collusion between cold storage operators and traders, artificially inflating prices by withholding supply from the market.

Drawing from Bangladesh's experience, where the government intervened by stationing security guards at cold storage facilities to ensure transparency, West Bengal's move to sideline cold storage operators and traders might be seen as a similar effort to establish price stability.

In recent months, several northeastern states under BJP rule have grappled with potato shortages and escalating prices. With West Bengal halting potato exports to these states, concerns mounted over exacerbating the crisis. However, swift action from the central government intervened to mitigate these challenges.

On July 5, the central government extended the unlicensed import of potatoes from Bhutan for three years, until June 30, 2027. The earlier one-year extension of unlicensed potato import from Bhutan ended on June 30, 2024.

This decision allows traders in India's northeastern states to procure potatoes from Bhutan without the need for licensing, effectively filling the void left by the halting of supplies from West Bengal. As a result, the acute potato supply crisis in northeastern states has now been addressed to some extent.

The central government’s decision comes just weeks after reports from Bhutan indicated that the country was actively exploring new export markets, including Nepal and Bangladesh.

Currently, India is the sole importer of Bhutanese potatoes, a situation that often leaves Bhutanese farmers vulnerable to price drops in the Indian market. When potato prices decline in India, Bhutanese farmers struggle to get fair prices for their crops, prompting them to seek alternative markets to secure better returns.

Bhutan's intention to diversify its export markets is driven by the need to stabilize and potentially increase revenue for its farmers. By considering Nepal and Bangladesh as potential markets, Bhutan aims to reduce its dependency on a single buyer and mitigate the risks associated with market fluctuations.

India, the world's second-largest potato producer, typically yields around 60 million tons annually. However, this year, production has slightly dipped to 59 million tons. Several regions worldwide are experiencing significant declines in potato production.

In Europe, potato production in 2022 was recorded at 55 million tons, a staggering 25% decrease from the levels seen in the year 2000. The continent is grappling with a severe shortage, with new crops expected only by the end of July. Prices have been surging due to limited supply.

Compounding the crisis, the ongoing war between Ukraine and Russia has further disrupted supply chains, exacerbating the scarcity. Both countries are major potato producers, and the conflict has not only reduced their production but also created significant logistical challenges in bringing their crops to the international market.

In light of these global challenges, it is crucial for the Indian government, along with state authorities, to take proactive measures to stabilize potato prices and ensure sufficient supply. The government must prioritize boosting production levels this year, given the shortfall experienced last year. Additionally, proper storage and conservation of harvested potatoes are essential to prevent shortages and manipulation of supply statistics and prices. In this light, the West Bengal government’s decision to procure potatoes directly from farmers is an apt and wise move.

Failing to address these issues could lead to skyrocketing prices, making potatoes unaffordable for many, particularly the economically disadvantaged. (IPA Service)