Rs 2,200 crore at stake: Saturated market and Bangladesh unrest crippling Bengal’s potato trade?

“In the 2025 season, the government offered MSP of Rs 900 per quintal under the potato procurement scheme, whereas average market prices fell to around Rs 600 per quintal, causing an estimated loss of over Rs 2,200 crore on the preserved 72 lakh MT stock,” Rana explained.

The Bangladesh situation is another setback, a cold storage owner added. “Due to the political instability there, legal export corridors like the Petrapole-Benapole route—which usually sees about 50 trucks or 1,000 metric tonnes of potatoes daily—have been largely closed. While some small-scale informal trade might still be happening, the high-volume legal exports we rely on have stopped,” he added.

Potatoes are one of the biggest cash crops in West Bengal and are cultivated on 5 lakh hectares. This season, the state is likely to produce nearly 140 lakh metric tonnes of the tuber.

Super harvest a concern

According to the cold storage owners, North Bengal has witnessed a “super harvest,” with potato production levels reported to be nearly three times higher than usual. The surplus in the region has led to a rapid decline in potato prices across South Bengal. “This time, the yields exceed 30 tonnes per hectare,” said Rana

Cold storage owner Sushovan Ghorai emphasised that the industry must shift toward by-products to survive as traditional storage and sales are becoming increasingly unsustainable.

“Approximately 72 lakh MT of potatoes are currently stockpiled in storage, with more expected from the current high-yield season. Traditional export routes to Assam and Bangladesh have been disrupted. North Bengal’s high production has saturated the Assam market, and political instability in Bangladesh has led to the closure of legal export corridors. Since 2013, when West Bengal restricted potato exports to protect its own supply, Odisha began its own large-scale potato cultivation, significantly reducing West Bengal’s market share in the state,” he said.

“Service charges for electricity are increasing monthly. The cost of labour for loading (per pack) has risen from Rs 8.57 last year to at least Rs 11 this year. The industry must shift toward by-products (processing potatoes into other goods) to survive,” Ghorai added.

What the Association expects

Speaking to the media, Subhajit Saha, Vice-President of WBCSA, said, “Cold storage operations have become increasingly cost-intensive due to rising power tariffs, higher labour and maintenance costs, expensive capital, and stringent compliance requirements. A rational revision of rental charges and extension of license validity to five years will significantly improve ease of doing business while ensuring uninterrupted support to farmers.”

“Targeted policy support and smoother inter-state movement are essential to prevent further stress on farmers and storage operators,” he added.

The Association also appealed for simplified legal procedures for disposal of undelivered stock, revision of outdated regulatory frameworks, and extension of cold storage license validity to five years to improve ease of doing business.

Reiterating its commitment to collaboration, the Association expressed confidence that constructive dialogue between the government and industry stakeholders would lead to sustainable solutions for farmers, traders, and cold storage operators alike.

The Association proposed several key measures, including:

• Transport subsidies for inter-state movement of potatoes
• ⁠Buyer-seller meets with neighbouring states
• Inclusion of potatoes in mid-day meals and the public distribution system
• ⁠Export-oriented cultivation and overseas market access
• Revision of cold storage rental charges in line with rising input costs.

Panchayats and Rural Development Minister Pradip Majumdar and Agricultural Marketing Minister Becharam Manna spoke about the export potential of the crop, and how the government had stepped in in the past.

“There is no dearth of demand in the domestic market. If farmers, with the help of technology and science, can produce potatoes with low moisture content, there can be export potential,” Majumdar said.

Meanwhile, Manna said, “In 2024, when potato production had dipped, retail prices in Kolkata had risen to Rs 45 per kg. If the govt had not intervened, people would have been forced to buy potatoes for Rs 55 a kg.”