Odisha food supplies and consumer welfare minister KC Patra on Thursday accused the West Bengal government of creating an artificial scarcity of potatoes to “tarnish the reputation” of the state’s BJP government.
Odisha has been grappling with high prices of the staple food for months. Recently, the government of Bengal, a major potato supplier to Odisha, restricted the shipment of the tuber as prices rose in its own markets. What has led to the spike in prices, and why is Odisha specially hit?
How much potato does India produce?
India is the second largest producer of potato in the world, after China. The area, production and yield of potato has seen a steady rise in the country. Between 1991-92 and 2020-21, potato area has doubled from 11 to 22 lakh hectares, and production tripled— from 181.95 to 561.72 lakh metric tonnes. Productivity increased by over 50 per cent—from 16 to 25 metric tonnes per hectare.
In India, potatoes are grown during the rabi (winter-spring) season, mainly in Uttar Pradesh, West Bengal, Bihar, Gujarat, Madhya Pradesh, Punjab, Haryana, Assam, Jharkhand and Chhattisgarh. A small quantity of potato is also grown during the kharif (monsoon) season in Uttarakhand, Karnataka, Himachal Pradesh, Tamil Nadu and Maharashtra.
With a production of 161 lakh tonnes, Uttar Pradesh was the biggest producer of potato in the country in 2021-22. It was followed by West Bengal, which recorded a production of 124 lakh metric tonnes. These two states accounted for almost half of the country’s total potato production of 533 lakh metric tonnes during 2021-22.
Odisha, though a major consumer, does not produce much of the crop. Potato is a temperate climate crop, requiring low temperatures from 15°C to 25°C, and Odisha’s agro-climatic conditions are not conducive for potato cultivation. Thus, the state is dependent on supply from other states, particularly from West Bengal, to meet its demand.
Lalu Mukhopadhyay, state secretary of the Potato Traders Association, said that West Bengal traders generally send 150-200 trucks of potato to Odisha and Chhattisgarh.
Is the price rise especially bad in Odisha?
Generally, potato prices see a seasonal variation—lower prices when the new rabi crop arrives in winter and spring seasons, and a rise in prices in late summer and monsoon. However, this year, prices have remained elevated not only in Odisha but in the entire country. The data on retail and wholesale prices suggest that the rise in potato prices in Odisha is in line with that in other states.
Data on the Department of Consumer Affairs’ website shows that the all-India daily average retail price of potato was recorded at Rs 38.08 per kg on Tuesday (December 3, 2024), which was 4.90 per cent higher than a month ago and 55.49 per cent higher compared with a year ago.
The all-India daily average wholesale price of potato was recorded at Rs 3,120.99 per quintal on Tuesday (December 3), 5.24 per cent higher than a month ago and 69.63 per cent higher as compared to a year ago.
Potato carries a weight of 0.98404 in the Consumer Price Index (CPI) and 0.27737 in the Wholesale Price Index (WPI), the headline inflation indicators. Being a staple, volatility in potato prices affects the common man, as well as the commercial HoReCa (Hotel, Restaurant, and Catering) sectors.
According to data available with the Ministry of Statistics and Programme and Implementation, the present spell of rising potato prices began earlier this year. After remaining in negative territory for a year (February 2023-January 2024), potato prices started rising from February.
Since July, the retail potato inflation has been hovering over 60 per cent, while the wholesale potato inflation has been 77-79 per cent.
Why are potato prices up?
One of the reasons is a drop in the potato production during crop year 2023-24 (July-June), which fell by 5.6 per cent to 567 lakh metric tonnes from 601 lakh metric tonnes in 2022-23. This drop is attributed to a slight decrease in area — 23.22 lakh hectares in 2023-24 from 23.32 lakh hectares in 2022-23.
Potato prices in the year before had been low, which could be a reason why farmers cultivated the crop on a smaller area.
Both the top producers—Uttar Pradesh and West Bengal—saw a decline in potato production during 2023-24 from the previous year. In Uttar Pradesh, potato production fell from 201.3 lakh tonnes to 191.7 lakh tonnes. However, the decline was sharper in West Bengal, where production declined by 15 lakh tonnes to 130 lakh tonnes during 2023-24 from 145 lakh tonnes in 2022-23.
Why should you buy our Subscription?
You want to be the smartest in the room.
You want access to our award-winning journalism.
You don’t want to be misled and misinformed.
Choose your subscription package
