Potato Price Surge in Odisha: Minister Blames West Bengal for Supply Restrictions Amid Nationwide Crisis
(Source: Indian Express; Section: Explained; Page: 11)
| Topic: GS3 – Agriculture |
| Context: |
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Analysis of News:
Potato Production in India
- India is the second-largest producer of potatoes globally, with production primarily concentrated in states like Uttar Pradesh (UP) and West Bengal.
- Together, these two states account for nearly half of the nation’s total potato output.
- However, Odisha’s agro-climatic conditions are unsuitable for potato cultivation, making it heavily reliant on West Bengal for its supply.
- Typically, West Bengal traders send 150–200 truckloads of potatoes daily to Odisha and Chhattisgarh.
Why Prices Are Rising Nationwide
Potato prices have spiked across India, not just in Odisha, due to a combination of seasonal variations and a production decline in the 2023-24 crop year. Key factors include:
- Decline in Production: A 5.6% drop in potato production to 567 lakh metric tonnes in 2023-24 from 601 lakh metric tonnes in 2022-23.
- Reduced Cultivation Area: A marginal decrease in potato cultivation area, particularly in UP and West Bengal, the top producers.
- Low Prices in Previous Years: Farmers planted potatoes on smaller areas due to unprofitable returns in earlier seasons.
- Seasonal Supply Patterns: Prices generally rise in late summer and monsoon due to limited fresh stock.
Impact on Odisha
- While the price surge is a national phenomenon, Odisha feels the brunt more acutely due to its dependency on external supply.
- This reliance exacerbates price volatility when neighboring supplier states, such as West Bengal, prioritize their own markets during shortages.
Economic and Social Implications
The sustained price rise has a direct impact on:
- Household Budgets: As a staple food, potato price inflation disproportionately affects low-income households.
- Inflation Metrics: Potatoes contribute significantly to Consumer Price Index (CPI) and Wholesale Price Index (WPI), influencing overall inflation rates.
- Commercial Sectors: The hospitality and food services sectors face increased input costs, leading to higher prices for consumers.
The Way Forward
Addressing this issue requires:
- Strengthening Storage and Distribution: Odisha could invest in cold storage and streamline supply chains to mitigate supply disruptions.
- Inter-State Cooperation: Greater coordination between potato-producing and consuming states to manage supply during shortages.
- Encouraging Local Cultivation: Initiatives to experiment with heat-tolerant potato varieties in Odisha to reduce dependency on imports.
- Price Stabilization Measures: Expanding government procurement and creating buffer stocks to stabilize prices during production shortfalls.
The crisis highlights the need for long-term planning to ensure food security and price stability for essential commodities like potatoes.
| About Potato crop |
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| Practice Question: Examine the factors contributing to the recent surge in potato prices in India, with a focus on Odisha’s dependency on external supplies. Discuss the economic and social implications of such price volatility and suggest measures to ensure food security and price stability. (250 words/15 m) |
